The “Cyber Insurance Gap” Is Threatening Most Companies

By   ISBuzz Team
Writer , Information Security Buzz | Aug 16, 2022 04:54 am PST

A new study by BlackBerry and Corvus Insurance confirms a “cyber insurance gap” is growing, with a majority of businesses in North America either uninsured or underinsured against a rising tide of ransomware attacks and other cyber threats.

  • Only 19% of all businesses surveyed have ransomware coverage limits above the median ransomware demand amount ($600,000)
  • Among SMBs with fewer than 1,500 employees, only 14% have a coverage limit in excess of $600,000
  • 37% of respondents with cyber insurance do not have any coverage for ransomware payment demands
  • 43% of those with a policy are not covered for auxiliary costs such as court fees or employee downtime
  • 60% say they would reconsider entering into a partnership or agreement with another business or supplier if the organization did not have comprehensive cyber insurance
  • Endpoint detection and response (EDR) software is frequently a key component to obtaining a policy
  • 34% of respondents have been previously denied cyber coverage by insurance providers due to not meeting EDR eligibility requirements