Cyber insurance known by other names such as “cyber risk insurance” or “cyber liability insurance” coverage, is an insurance product that enables businesses to cover the costs related to recovery from a cyber security breach or cyberattack resulting in downtime, loss of business, damaged reputation, email compromises, data leaks and more. The cyber insurance industry is evolving fast and the Cyber Insurance company’s list of exclusions is growing even faster.
The misconception and false sense of protection is an overstatement when it comes to cyber insurance. It is crucially important to understand the way cyber insurance works and fully understand the coverage required conditions.
The projection is that the cost of cyber insurance is due to increase by 40-75% in the coming year. That’s alongside a constantly growing threat of ransomware, supply chain attacks, and more.
Cyber insurance companies have paid loads of ransom for their clients (among recovery costs) in the past and therefore are tightening their requirements to approve any application and also reducing their liabilities by denying claims for companies that are not complying with their requirements such as lack of deployment of Multi-Factor Authentication, Email security, Next-Gen Antivirus and firewalls.