Cyber liability insurance can be a lifeline in the event of a major incident or breach. Cyber incidents rose 35% in 2020 alone with data breaches costing $4.24 million per year, resulting in cyber insurance premiums jumping up by 50-100%. Modern challenges like phishing, ransomware, remote workforces, stolen credentials and personal devices demand increasingly sophisticated cybersecurity practices. Organizations must secure themselves against unknown and advancing threats while striking a balance between proactive and reactive measures. No doubt, cyber insurance is a hot topic right now. Do you need it? How do you qualify for it? How much will it cost?
Like health and car insurance, cyber insurance is a line of coverage designed to mitigate losses from cyber incidents. Organizations may suffer data breaches, network damage, stolen backups, reputational damage and the disruption of daily operations. Multi-factor authentication (MFA), endpoint visibility and access controls like Duo provides are often required and can mitigate these risks and lower insurance rates. The unfortunate reality is that cyber insurance is becoming a necessity for organizations big and small. It’s no longer a question of whether you should buy cyber insurance and what it covers. It is now how much of this insurance should you buy? And what security practices do you need to put in place to qualify?