Conventional insurance vs. cyber insurance: what are the differences, what's at stake?

Two insurance policies, two protection approaches

With the digital transformation of businesses, cyber-attacks are no longer a theoretical threat: they have become one of the major risks for all structures, from VSEs to large corporations. Yet many still believe that conventional insurance protects them against these digital risks. But this is not the case.

It's essential to understand what traditional insurance covers... and why it's no longer enough in this age of ransomware, data leakage and online fraud.

What traditional insurance covers

Traditional insurance is designed to protect businesses against physical and material risks: fire, water damage, theft, machine breakdown... It may also include professional civil liability, covering damage caused to third parties in the course of business.

But what about in the event of a cyber attack? Unless you have taken out a specific extension, these policies do not cover:

• Business interruption caused by ransomware;
• Loss of digital data;
• Crisis management costs in the event of a personal data leak;
• RGPD notification costs or cyber expertise.

To put it plainly, cyber risk does not fall within the scope of traditional policy cover - simply because it is neither material damage nor a fortuitous event in the conventional sense.

Why cyber insurance is essential

Today, 43% of cyber attacks target SMEs, according to ANSSI. Why is this? Because they are often poorly prepared and inadequately protected. A cyber attack can cause :

• A sudden halt in activity (systems blocked, orders suspended) ;
• Immediate loss of revenue;
• A massive leak of customer or HR data, with the risk of RGPD fines;
• Damage to brand image and loss of trust;
• Legal expenses or commercial disputes.

This is the context in which cyber insurance comes into play, designed to cover the concrete consequences of a cyber attack and support the company in crisis management.

What does cyber insurance cover?

Serious cyber insurance goes far beyond financial compensation. It provides for

• The intervention of cybersecurity experts, to contain the attack and understand its origin;
• The cost of notifying customers and authorities in the event of a data leak;
• Compensation for operating losses (sales not generated during the incident);
• Legal assistance and crisis communication, essential for preserving reputation;
• Management of ransom demands, in accordance with the terms of the contract.

At Dattak, we go one step further with a proactive approach: we don't just react in the event of a loss. As soon as they sign up, companies benefit from a range of services included in their coverage:

• Vulnerability scans to detect exploitable vulnerabilities;
• Cybersecurity tools accessible to the entire team;
• Training and awareness campaigns to reduce human error, the #1 cause of cyber-attacks.

It's this approach that makes the difference: cyber insurance doesn't just protect after the attack. It acts upstream to prevent incidents.

A safety net... but also a lever for resilience

Cyber insurance is not just a policy to be activated in the event of a crisis. It is a strategic tool that enables us to :

• Structure a genuine cybersecurity posture;
• Strengthen the confidence of customers and partners;
• Meet regulatory requirements (RGPD, DORA, NIS2...) ;
• Control risks and limit the financial impact.

It's useful insurance even without a claim, as it enables companies to gain cyber maturity and autonomy in prevention.

In conclusion

Cyber attacks are now as likely - if not more so - than a fire or a burglary. Not being prepared means running a major risk to your business.

👉 Classic insurance protects your physical assets. 🔐 Cyber insurance protects your digital assets.

And today, both are equally essential to the survival of your business.

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This article continues the Dattak Decode episode "Insurance vs. Cyber Insurance" with Chadi Hanna. Watch the full video on our YouTube channel. Cyber risk is the number 1 risk for any company, whatever its size.