Cyber Insurance Isn’t Enough: How VPNs Fit Into a Smarter Digital Security Strategy

Cyberattacks are no longer limited to large corporations. Individuals, freelancers, and small businesses are increasingly targeted through phishing scams, ransomware, and data breaches. As these threats grow more sophisticated, many consumers turn to cybersecurity insurance for financial protection.

But insurance alone doesn’t stop cyber incidents from happening. That’s why insurers and cybersecurity experts increasingly emphasize preventative security controls—including tools like Virtual Private Networks (VPNs)—as part of a broader risk management strategy.

Understanding how cyber insurance and preventative tools work together is essential for anyone looking to protect their data, finances, and digital identity.

The Evolving Cyber Risk Landscape

Cybercrime continues to rise as more personal and business activity moves online. Remote work, cloud storage, and public Wi-Fi usage have expanded the number of potential entry points for attackers.

High-profile data breaches regularly expose millions of records, leading to:

• Financial losses
• Identity theft
• Business interruption
• Reputational damage

These incidents highlight an important reality: cyber insurance helps after a loss—but it does not prevent one.

What Cybersecurity Insurance Covers (and What It Doesn’t)

Cyber insurance is designed to help policyholders recover financially after certain cyber incidents. Coverage may include:

• Data breach response costs
• Ransomware payments (where legally permitted)
• Business interruption losses
• Legal fees and regulatory fines
• Identity restoration services

However, many policies have coverage limitations, such as:

• Exclusions for poor security practices
• Requirements to maintain “reasonable” safeguards
• Sub-limits for ransomware or social engineering losses

Insurers increasingly assess whether a policyholder took steps to reduce cyber risk before an incident occurred.

Why Preventative Security Measures Matter to Insurers

Cyber insurers don’t just look at what you insure—they look at how you protect yourself.

During underwriting, insurers often evaluate:

• Multi-factor authentication (MFA)
• Data encryption
• Secure backups
• Endpoint protection
• Employee security training

Preventative tools reduce the likelihood and severity of claims, which is why insurers encourage — and sometimes require — basic cybersecurity controls.

Where a VPN Fits Into Cyber Risk Reduction

A Virtual Private Network (VPN) creates an encrypted connection between your device and the internet. While it is not a complete cybersecurity solution, it plays a valuable supporting role in protecting data.

Key VPN Benefits

• Encrypts internet traffic, reducing interception risk
• Masks IP addresses, improving privacy
• Protects data on public Wi-Fi, a common attack vector
• Reduces exposure to man-in-the-middle attacks

For remote workers, freelancers, and frequent travelers, VPNs help close common security gaps—especially when accessing sensitive data outside secure networks.

Can Using a VPN Affect Cyber Insurance?

A VPN alone will not guarantee lower premiums or broader coverage. However, it can support a stronger overall security posture.

In practice:

• Insurers are more focused on comprehensive security controls than any single tool
• VPN usage may help demonstrate reasonable cybersecurity practices
• Strong preventative measures can reduce claim likelihood and underwriting risk

Think of a VPN as one layer in a multi-layered defense, not a substitute for insurance or advanced security controls.

Final Takeaway

Cyber insurance is an essential safety net—but it works best when paired with preventative cybersecurity measures. VPNs don’t stop every cyber threat, but they help reduce common vulnerabilities, particularly for remote and mobile users.

In today’s threat environment, insurers and cybersecurity professionals agree on one thing: prevention and protection work best together.