Security News > 2021 > November > The cyber insurance dilemma: The risks of a safety net

The original purpose of cyber insurance is to cover the extortion losses of a business if a successful ransomware attack happens, and the business has no other options but to pay the ransom demand for business continuity or to mitigate future losses.

This growing lack of vigilance and responsibility from some insured companies is tilting the balance of the cyber insurance market, forcing the insurance companies to raise the premium price and adjust the underwriting standards to lower their own risks of loss.

Maintaining a healthy ecosystem for the cyber insurance market should be a responsibility that falls on both the insurers and the insured businesses.

Every company owner should be aware of what they are looking for when it comes to cyber insurance.

There are also firms that specialize in cyber insurance and understand the risks related to the specific business or organizations.

The simplest way for business owners to find an insurance plan that best fits their company is to start with the current business liability insurance provider and ask if they have special experts that deal with cyber insurance.

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