The need for business cyber security insurance has skyrocketed in the last decade, especially within the last few years.

What many current businesses just learning about this need to secure themselves with cybersecurity insurance are finding today is that getting this coverage is becoming more challenging as the months and years pass.

As much as businesses need this coverage, many cyber security insurance carriers are either refusing to cover or increasing the cost of these policies exponentially.

Financial losses are unfortunately beginning to alter the shape of how agencies provide this much-needed protection and the hoops that businesses must now go through to get it.

Massive Carrier Losses in Cybersecurity Insurance

There is no doubt that more businesses than ever need cyber security insurance for the number of digital threats that they now face on a day-to-day basis.

The problem with this from the side of the cybersecurity insurance carriers is that the amount of damages businesses are being subject to has resulted in massive losses to the insurance industry itself.

As with any other type of risk, when insuring certain customers against certain risks becomes too unsafe even for the carriers, the industry takes a closer look and rethinks the feasibility of offering this protection.

Cybersecurity Attacks And Their Costs Are Increasing

Damages due to data breaches and other cybersecurity issues topped $20 billion in 2021 and are expected to go higher by the end of this year.

As the costs of these attacks are rising, so is their frequency as more hacking, malware, ransomware, and other digital threats are being developed every day.

Quite simply, cyber security insurance carrier risk forecasters did not predict this extreme increase in internet fraud activity over the past two to three years when insurance plans were developed.

With losses skyrocketing, cybersecurity insurance providers are now being forced to rethink their whole approach and ability to provide this coverage.

As a result, many businesses are being declined coverage or even having their renewals rejected and those who are getting coverage are seeing substantial increases in policy premiums.

Cybersecurity Insurance Carriers Are Tightening Their Belts

What does all of this mean for businesses in need of cyber security insurance now but facing problems securing it?

Working closely with cyber security insurance agencies to reduce risks is becoming a key factor.

Businesses are in a position where they must prove to potential insurers that they take risk reduction seriously and have invested in cybersecurity and data protection.

Cybersecurity insurance carriers are beginning to set baseline security measures that any client seeking this type of insurance must meet before they will be considered insurable.

These measures include employee training, plans for managing third-party risks, vulnerabilities, software patches and disaster responses, access management, logging and monitoring, email management, and even business owner end-of-life planning among many other details that can all affect cyber security.

Plan For Protection With A Cyber Security Insurance Agency

Keeping businesses protected with cyber security insurance has never been more important than it is today; however, getting a cybersecurity insurance policy is not so easy right now.

To purchase this essential protection at an affordable rate, business owners must work hard to qualify as insurable.

Partnering with cyber security insurance agencies and planning with them to develop risk management programs that reduce the chances of cyber attacks are what can make any business a more insurable customer!