blog

Cyber Insurance Basics: What Every Business Needs to Know

Written by Mike Knox | Aug 25, 2025 7:05:11 PM

 

Cyberattacks don’t send a calendar invite before they hit. One day you’re running payroll, the next you’re locked out and wondering why “ransomware” sounds scarier than a gator in your backyard. 🐊 (Side note, unrelated to cyber insurance....Go Gators!)

When a breach happens, costs pile up fast — data recovery, downtime, upset customers, legal headaches. That’s where cyber insurance can soften the blow. But here’s the catch: not every policy pays out the way you think. Many come with fine print that only kicks in if your IT house was already in order.

What is cyber insurance, really?

Think of it as coverage for digital disasters:

  • Data recovery + system restoration

  • Legal fees + fines

  • Customer notifications + credit monitoring

  • Business interruption losses

  • Even ransom payments (sometimes)

It won’t stop an attack, but it can help cover the cleanup.

Why claims get denied

Insurers aren’t in the habit of writing blank checks. Common reasons they say “nope”:

  • Weak or missing security controls

  • Outdated or unpatched software

  • No incident response plan

  • Poor documentation (or none at all)

Basically, if your digital locks were flimsy, don’t expect a payout.

How to get claim-ready

To keep insurers happy (and your business safe), you’ll need:

  • Strong basics like MFA, backups, and endpoint protection

  • A clear incident response plan

  • Routine patching + updates

  • Employee training that goes beyond “don’t click sketchy links” (pro tip: they shouldn't click sketchy links!)

  • Regular risk assessments

Where we come in

At Knox Tech, we help small businesses in SWFL close those gaps so your insurance actually works when you need it. We make sure your IT and your policy are on the same page — so one hacker can’t throw your whole business off track.

Not sure where to start? We’ve got you.
👉 Contact Knox Technology today — and let’s build your plan before a potential cyber attack.