Cybersecurity incidents and data breaches have become a normal part of the news cycle. It feels like every day you hear about a big corporation or organization suffering an attack that has put customer or user data in jeopardy. Sometimes this is because a security strategy was lacking; sometimes, the criminal’s attack was simply too powerful.

Regardless of how or why a cyberattack begins, the fallout can be devastating for all those involved. Individuals may have their privacy at risk or even be in danger of having their identity stolen. From the organizational point of view, a cybersecurity incident can have a huge range of consequences, each of which can result in damaging profits.

These consequences include a dramatic drop in reputation and a potential halt in business operations. Cyberattacks can also lead to a company being fined by regulators. These fines can sometimes be higher than the cost of the actual attack itself. And then there are the knock-on effects of a cyberattack: companies may need to rebuild databases or even purchase new security software and hardware.

Cybersecurity experts recommend that companies focus their efforts on preventative measures for detecting and blocking potential attacks while also putting disaster recovery practices into place so they can respond appropriately. However, there is also another tool at their disposal: cybersecurity insurance.

By one estimate, the cybersecurity insurance market will reach an astounding mark of $7.5 billion by the year 2020. That makes it a topic worth learning more about.

History of Cybersecurity Insurance

State-of-Cybersecurity-Insurance State Deployment Fig 1

The concept of cybersecurity insurance has actually been around for close to 20 years. At the start of the new millennium, the Internet had matured into a state where customers felt more comfortable shopping and banking online. At the same time, companies were concerned about the Y2K threat (Read more...)