What Is Cyber Insurance?

What Is Cyber Insurance?

In the digital age, companies rely heavily on technology to conduct their operations and manage sensitive information. However, with this reliance comes the risk of cyberattacks, data breaches, and other online threats that can have serious financial and reputational consequences. That's where cyber insurance comes in. 

In this blog post, we’ll explore what cyber insurance is, what it can cover, and why it has become an essential tool for managing the risks of conducting business in today's digital world.

What is cyber insurance?

Cyber insurance is a type of insurance designed to protect individuals and businesses from internet-based risks, such as data breaches, cyberattacks, and other types of cybercrime. It typically provides coverage for expenses related to the recovery from a cyber attack, including legal fees, public relations expenses, and other costs associated with responding to the attack.

Cyber insurance has become increasingly popular in recent years as the number and severity of cyber-attacks have increased, and more companies have come to rely on digital technology to conduct their business.

What companies should have cyber insurance? 

Cybercrime is rising across the board, and every company should take steps to protect itself. 2022 had the second-highest number of data compromises in the U.S. in a single year, and the total cost of cybercrime is predicted to hit $8 trillion by the end of 2023 and grow to $10.5 trillion by 2025. For individual businesses affected, the cost can be significant: in 2022, the average cost for a data breach in the U.S. was $9.44M.