As hacking continues to hit the headlines every few weeks — most recently the hack on Saks and Lord and Taylor — insurance policies to protect businesses against damage and lawsuits continue to become a very lucrative business.

Your company may already have cyber insurance, and that’s a good thing. But that doesn’t mean that you don’t have a job to do. You see, insurance won’t cover you no matter what.

When you buy a car, you get the warranty. But to keep that warranty valid, you must perform regular maintenance at regularly scheduled times. If you neglect the car, and something fails, the warranty won’t cover it. You didn’t do your job, and the warranty only covers cars that have been taken care of.

Cyber insurance works the same way. If your company isn’t keeping computers patched and up to date, taking active measures to prevent ransomware and other cybercrime attacks, and backing everything up in duplicate, it’s a lot like neglecting to maintain that car. That’s why Managed IT Services are so important today. When something bad happens, like a cyber-attack, the cyber insurance policy won’t cover your claim, just as a warranty policy won’t cover a neglected car.

Check out this real-life policy exclusion we recently uncovered, which doesn’t cover damages “arising out of or resulting from the failure to, within a reasonable period of time, install customary software product updates and releases, or apply customary security-related software patches, to computers and other components of computer systems.” If your cyber insurance policy has a clause like that — and we guarantee that it does — then you’re only going to be able to collect if you take reasonable steps to prevent the crime in the first place.

With Managed IT Services, you’re more likely to avoid being hacked. Cyber criminals go after the low hanging fruit such as small businesses that fail to protect themselves. With Managed IT services your computer system will be up to date and you’ll have a better chance of defending any future claim.

Losing cyber coverage doesn’t just mean you will have to pay a ransom out of pocket, by the way. If your security breach leaves client and partner data vulnerable, you could be sued for failing to protect that data. If your cyber insurance policy is voided because of IT security negligence, you won’t be covered against legal damages, either. This is not the kind of position you want to be in.

All of this is not to say that you shouldn’t have cyber insurance, or that it’s not going to pay out in the case of an unfortunate cyber event. It’s just a reminder that your job doesn’t end when you sign that insurance policy. You still must make a reasonable effort to keep your systems secure — an effort you should be making anyway.

iMedia has years of providing Managed IT Services and helping our clients with cyber security readiness. Call 508-790-4171 to schedule your Cyber Security Assessment or go online now and sign up at