Cyber Insurance protects organizations against the effects of cyber attacks including but not limited to data recovery, legal costs, customer related costs and sometimes, ransomware payments. Cyber Insurance while important to have, does not protect the organizations against all cyber threats and does not absolve the organization of having a strong network security in place that is aimed at preventing cyber-attacks. With lines blurring between state sponsored attacks and those committed by private actors, extent and amount of coverage varies. Law enforcement guidelines prevent cyber insurance companies from underwriting ransom ware payments as these may inadvertently increase the incidence of ransom attacks as insurance against ransomwares would result in a higher probability of payouts. Insurance companies are also demand a baseline cybersecurity protocol in place prior to underwriting.
