Page 163 - Cyber Defense eMagazine January 2024

Understand Cyber Insurance: Rising Risks

and How to Right-Size Policies

Cyber insurance can be a tricky part of cybersecurity strategy — here’s what to know in today’s
security climate

By John Reith, Partner Success Manager at DataStream Cyber Insurance

Cyber insurance is an increasingly crucial backstop to cybersecurity practices. While enlisting
comprehensive protections and preventing data breaches is always the best-case scenario, a sufficient
cyber insurance policy can mitigate the sizable expenses that arrive in a breach’s aftermath—from the
investigation, to public relations and legal costs, to regulatory fines. Because cyber insurance often
requires policyholders to adhere to prescribed cybersecurity practices based on established compliance
mandates, cyber insurance can also help businesses adopt safeguards to get their houses in order and
stay on regulators’ good sides.

As I see it, the day is fast arriving when most businesses will be required to hold cyber insurance—maybe
even every business. Mortgage lenders require borrowers to carry homeowners insurance, and the law

Cyber Defense eMagazine – January 2024 Edition 163
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