Over the years, cyberattacks and data breaches have become one of the biggest risks in the business sector, compromising sensitive data and causing a massive financial hit to companies and organizations worldwide. As data applications increase and technology advances, organizations are becoming more vulnerable to these attacks and more aware of the need for cyber-risk insurance coverage. According to data presented by Finaria, the global cyber insurance market is expected to grow by 21% year over year to reach a value of $9.5 billion in 2021.
When a costly data breach occurs, companies don’t always have enough resources to resolve the issues and cover the losses. Cybersecurity insurance provides support to businesses, so cyberattacks don`t cripple their business. These insurance products help companies and organizations hedge against the potentially devastating effects of ransomware, malware, distributed denial-of-service (DDoS) attacks, or other types of cyberattacks.