{"id":108503,"date":"2024-09-10T15:51:44","date_gmt":"2024-09-10T22:51:44","guid":{"rendered":"https:\/\/www.backblaze.com\/blog\/?p=108503"},"modified":"2025-12-12T06:58:03","modified_gmt":"2025-12-12T14:58:03","slug":"what-is-cyber-insurance","status":"publish","type":"post","link":"https:\/\/www.backblaze.com\/blog\/what-is-cyber-insurance\/","title":{"rendered":"What Is Cyber Insurance?"},"content":{"rendered":"\r\n
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The first cybersecurity insurance policy was issued in 1997. In the following 27 years it\u2019s grown from a niche insurance product to an important consideration for organizations large and small to protect their bottom line from cyber threats like malicious data breaches, malware, phishing attacks, and ransomware<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n

While there are many security tactics to deploy in order to maintain business continuity (BC) should any of the above happen, getting back up and running in the event of a security incident can cost time and money. Cyber insurance is one way to reduce fallout from security events, prepare your business, and support business continuity objectives.\u00a0<\/p>\r\n\r\n\r\n\r\n

Today, we are breaking down the basics of cyber insurance: What is it? How much will it cost? What do cyber insurance companies provide? And how do you get it?<\/p>\r\n\r\n\r\n\r\n

Does my organization need cyber insurance?<\/h2>\r\n\r\n\r\n\r\n

Cyber insurance has become more common as part of BC planning. Like many things in the cybersecurity world, it can be a bit hard to measure precise adoption numbers because there are different industry associations, enforcement agencies, and so on in different geographic markets. According to Fortune Business Insights<\/a>, the global cyber insurance market size was valued at $16.66 billion in 2023. The market is projected to grow from $20.88 billion in 2024 to $120.47 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.5% during the forecast period.<\/p>\r\n\r\n\r\n\r\n

Take a look at these three data points in cybersecurity risk:<\/p>\r\n\r\n\r\n\r\n

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  1. According to a 2023 Ransomware Market Report<\/a>, global ransomware costs are predicted to reach $265 billion annually by 2031, up from $20 billion in 2021.<\/li>\r\n\r\n\r\n\r\n
  2. According to IBM, the average cost of a data breach in the U.S.<\/a> is $4.88 million, up 10% over 2023.<\/li>\r\n\r\n\r\n\r\n
  3. Fifty-nine percent of organizations were hit by ransomware in the last year, according to Sophos\u2019 State of Ransomware 2024 report<\/a>.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n

    Whether your company is a 10 person software as a service (SaaS) startup or a global enterprise, cyber insurance could be the difference between a minor interruption of business services and closing up for good. However, providers don\u2019t opt to provide coverage for every business that applies for cyber insurance. If you want coverage (and there are plenty of reasons why you would), it helps to prepare by making your company as attractive (meaning low-risk) as possible to cyber insurers. Some cyber insurance providers like Coalition<\/a> even offer assistance and services to reduce your cyber risk posture before<\/em> an attack as part of a \u201cwhole package\u201d approach.\u00a0<\/p>\r\n\r\n\r\n\r\n

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    Webinar alert: Learn more about cyber insurance<\/h4>\r\nJoin Backblaze and cyber insurance partner, Coalition, on October 17, 2024 at 11 a.m. PT to learn more about how to leverage cyber insurance requirements to help protect your business and drive growth. Not able to make it day-of? No worries\u2014sign up anyway and we’ll send the recording to your inbox.

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