“We Aren’t A Target” - 3 Biggest Misconceptions With Cyber Insurance

“We Aren’t A Target” – 3 Biggest Misconceptions With Cyber Insurance

When it comes to cyber insurance, one of the most common phrases we hear is:
“We aren’t a target.”

Many businesses—especially small and mid-sized companies—assume that cyber liability insurance is unnecessary. But this assumption can lead to massive financial consequences if a cyberattack does occur. In this post, we’ll walk through the three biggest misconceptions businesses have about cyber insurance—and why they’re dangerous.

1. “We’re Too Small to Be Targeted by Hackers”

It’s a common belief that hackers are only after large corporations. But here’s the truth:

Cybercriminals don’t care how big your business is—only how vulnerable it is.

In fact, smaller businesses are often more appealing targets because their security measures are usually less robust. Hackers see them as low-hanging fruit. It takes less effort to breach a small business, and even limited access to data can be monetized quickly on the dark web.

Bottom line: If you think your business is flying under the radar, you may be exactly the type of target cybercriminals are looking for.

2. “We Don’t Have Any Sensitive Data”

Think again.

Even if you don’t store health records or credit card numbers, your business still has valuable information that can be exploited:

• Customer names and emails
• Employee records (SSNs, payroll details)
• Access to internal systems or vendor networks
• Login credentials or cloud storage accounts

Cybercriminals can use any of this data for identity theft, ransomware attacks, or even as a gateway to bigger partners in your supply chain. Your data doesn’t have to be “highly sensitive” to be valuable.

3. “We Have a Good IT Company That Handles All of That”

Investing in strong IT infrastructure is critical—but it doesn’t eliminate cyber risk.

Just look at high-profile companies like MGM Resorts, who spend tens of millions on cybersecurity… and still got hacked.

No system is 100% secure. Whether it’s a phishing email, a credential breach, or a zero-day exploit, cyberattacks can and do bypass even the best defenses.

Think of cyber insurance like property insurance. Just because your building has sprinklers and alarms doesn’t mean you skip coverage. It’s the financial safety net when something unexpected happens.

The Reality: Cyber Insurance Complements Your Risk Strategy

Cyber liability insurance is not just about compliance with vendor contracts or checking a box. It’s a critical part of your business’s risk management plan.

It covers costs such as:

• Incident response & forensic investigations
• Legal defense and regulatory fines
• Customer notifications and credit monitoring
• Business interruption and data recovery

If you’re relying only on technology—or assuming you’re not at risk—you’re leaving your business exposed.

Final Thought

Saying "We aren't a target" is like saying "We don't need fire insurance because we installed smoke detectors." It might feel true—until something goes wrong.

Cyber insurance is the backup plan your business can't afford to ignore.