Security News > 2022 > January > School District reports a 334% hike in cybersecurity insurance costs

School District reports a 334% hike in cybersecurity insurance costs
2022-01-22 16:16

Bloomington School District 87 in Illinois has published its cyber-insurance renewal details, and the cost has jumped from $6,661 in 2021 to $22,229 this year.

Suburban School Cooperative Insurance Program is an insurance pool allowing school districts to join together to negotiate better insurance rates and lower management fees.

Ransomware actors, particularly the less skilled affiliates, target smaller school districts because they are seldom well-protected against attacks and usually can't afford a large dedicated IT and security team.

As schools usually have an active insurance policy, they are attractive targets to threat actors who are hoping for a quick payment from insurance companies.

The healthcare sector was also bombarded by ransomware actors in 2021, mainly for the same reasons that make school districts ideal targets for cybercriminals.

Lori Sussman, Assistant Professor of Cybersecurity at the University of Southern Maine, has told Bleeping Computer that the increase in cyber insurance premiums will continue to outstrip other insurance instruments until organizations can stem the rising attacks.


News URL

https://www.bleepingcomputer.com/news/security/school-district-reports-a-334-percent-hike-in-cybersecurity-insurance-costs/