Financial Times’ Post

Cyber insurance is essential in today’s digital landscape, yet many companies remain unprotected, cost, complexity, and misunderstanding of coverage often hold them back, businesses need to assess their cyber risks carefully and see insurance as part of a wider cybersecurity strategy, not a standalone fix.

Unfortunately many boards have left 'cyber risk' to be an IT department problem. Few IT managers will admit to weaknesses in their company cyber security. This approach could itself expose directors to personal liability to shareholders and regulators, should it be deemed that a more robust strategy had been ignored. The application for buying cyber insurance can be a good test for checking cyber security levels. Major insurers of cyber insurance have deep knowledge and excellent tools for risk assessing cyber exposure. The feedback from this can be extremely valuable to companies to help them improve their resiliance to cyber attacks and data breaches. Specialist #cyber #insurance brokers can arrange this, complemented with significant balance sheet protection as well as #claims project management and cyber disaster recovery....

Companies need a layered defence, training, physical security, technical security, and mitigations should all be in place, and ultimately insurance needs to be there.

Cyber insurance is becoming essential as digital risks grow 🔐. Policies typically cover data breaches, ransomware, business interruption, and legal costs - but they often exclude reputational damage, future lost profits, or unpatched system vulnerabilities. Costs vary widely depending on industry, company size, and risk profile, but demand (and premiums) are both on the rise.

Good reminder: cyber insurance can transfer risk, but it doesn’t replace a solid defense posture.

It’s surprising how many organisations still underestimate cyber risk. We insure against rare events, yet often ignore threats that occur daily and can be just as disruptive. As breaches become more frequent and complex, cyber insurance is likely to shift from a “nice-to-have” to a core element of corporate risk strategy.