Cyber Insurance: Are You Protected?
- Samantha McKeag
- Sep 25
- 3 min read
Updated: Nov 19
Cyber Attacks are the leading cause of all insurance claims right now. Gain the knowledge you need to protect your business with tailored Cyber Insurance from WMB.
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Cyber Attacks Are Increasing Year-Over-Year
Average Cost of a Data Breach (by Region, 2024–2025)
Source: IMB, 2024
Average Weekly Cyberattacks per Organization (Q1 2025)
Source: Check Point Research, 2025
Average Weekly Cyberattacks per Organization (Q1 2025)
Source: Allianz, 2025
Implications of a Cyber Attack
There are many ways in which a cyber attack or digital outage can effect business - some of them obvious, some of them not so much.
Financial:
Ransom payments, incident response, forensic investigations, system restoration.
Regulatory fines, legal fees, third-party claims, business interruption.
Average cost of a global data breach ~USD $4.9M (IBM, 2024); higher for large enterprises.
Operational Disruption:
Downtime halts production, logistics, or services.
Ransomware often shuts critical systems for days or weeks.
Supply chain exposure: one compromised vendor can ripple across partners.
Reputation & Customer Trust:
Breaches erode confidence among clients, investors, and partners.
Long-term damage to brand equity can exceed direct financial losses.
Regulatory & Legal Exposures:
Non-compliance with data protection laws (e.g., GDPR, CCPA) results in heavy fines.
Growing litigation risk from affected customers, employees, or shareholders.
Underwriter Scrutiny is Making It Even More Complicated
Tighter Underwriting Standards
Insurers demand detailed cyber risk assessments before binding coverage.
Greater scrutiny of IT hygiene, patch management, access controls, and endpoint security.
Mandatory Controls
Multi-factor authentication (MFA), privileged access management (PAM), and endpoint detection/response (EDR) are often prerequisites.
Backups must be secure, offline, and regularly tested.
Incident response and business continuity plans must be documented and audited.
Coverage Limitations & Exclusions
Narrower definitions of what’s covered (e.g., ransomware, social engineering, nation-state attacks).
Sub-limits for high-severity exposures like ransomware or business interruption.
Premiums & Retentions
Pricing tied more directly to the insured’s cyber maturity and industry sector.
Higher deductibles/retentions for firms with weak controls.
Preferred rates for those with demonstrable resilience measures.
Continuous Monitoring & Risk Engineering
Some insurers require ongoing cyber risk scans or partner with cybersecurity firms to assess vulnerabilities.
Policyholders increasingly get bundled with risk-management services (training, monitoring, incident response support).
Emphasis on Governance
Underwriters assess board oversight, risk culture, and employee training.
“Tone from the top” matters—companies with executive buy-in on cyber risk get better terms.
Protect Your Business with Wilson M. Beck Global Risks
There are a number of ways to protect your business from cyber attacks; in addition to meticulous risk management, a cyber-specific insurance policy can make all the difference - and Wilson M. Beck Global Risks Inc. can help!
Some lines of coverage global enterprises should consider include:
Standalone Cyber Insurance (Primary Cyber Policy)
Technology Errors & Omissions (Tech E&O) with Cyber Coverage
Property & Business Interruption with Cyber Triggers
Directors & Officers (D&O) Insurance with Cyber-Related Claims
Specialty / Sector-Specific Cyber Policies
Get the WMB Difference
Need Help?
Contact Wilson M. Beck Global Risks to discuss how to protect your business - wherever it takes you.
Wilson M. Beck Global Risks Inc. is a boutique division of Wilson M. Beck Insurance Services, offering tailored insurance and risk management solutions backed by over 100 years of combined experience.
Our team delivers personalized service rooted in trust, collaboration, and genuine care, ensuring every client feels understood, supported, and confident in their protection.
Our specialization in multinational insurance and corporate risk solutions is designed for mid-sized to large organizations that demand personalized service, specialized expertise, and seamless execution – wherever your business grows.
Contact Wilson M. Beck Global Risks to find out more about how our team of global experts can protect your operations and help keep you resilient, compliant, and in business.
We Care. We Help.
Article References:
Allianz Commercial. (n.d.). Allianz risk barometer 2025 – Cyber incidents. Allianz Commercial. https://commercial.allianz.com/news-and-insights/expert-risk-articles/allianz-risk-barometer-2025-cyber-incidents.html
Check Point Software Technologies. (2025, July 22). Global cyber attacks surge 21% in Q2 2025 — Europe experiences the highest increase of all regions. Check Point Blog. https://blog.checkpoint.com/research/global-cyber-attacks-surge-21-in-q2-2025-europe-experiences-the-highest-increase-of-all-regions/
IBM Newsroom. (2024, July 30). IBM report: Escalating data breach disruption pushes costs to new highs. Body
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