What Is Cyber Insurance—and Why Mid-Market Enterprises Can't Afford to Ignore It

Too many businesses still treat cyber insurance as optional and that decision is proving catastrophic.  According to the IBM 2024 Data Breach Report, the United States led the world once again with an average breach costing businesses $9.36M. In recent data published by Arctic Wolf, 62% of organizations in the United States are covered with cyber insurance, predominantly utilized by large enterprises- leaving the small-to-mid market rushing to keep up. The cyberthreat landscape is ruthless and ever evolving, which is why it is imperative to safeguard against it and insure your company's security. 

Cyber insurance acts as a safety net for companies, allowing them to navigate business without the worry of a catastrophic attack. Cyber insurance is a relatively new concept and therefore undervalued. It is specifically designed to mitigate risk and supply business protection. Safeguarding  and assisting the insured with incidents such as data breaches, ransomware attacks, cybercrime, fraud, incident response costs, legal services, and regulatory fines just to name a few. Some of the most prominent names in business are reporting significant losses and damages. The healthcare industry was a heavy hitter in terms of breaches. It was reported by The HIPPA Journal that 2024 saw the most ever breached healthcare records with a staggering 184,111,469- a 9.4% jump from the previous year. 

Cyber insurance is rapidly becoming a must have for businesses. Taking the risk of not insuring is too high a cost, causing many businesses to file bankruptcy or even closing up shop when hit with a cyber breach. The mid-market, in particular, is the most vulnerable. As noted by Network Assured, 99% of all cybersecurity insurance claims came from businesses with an annual revenue under $2 billion. With such alarming statistics, businesses outside of the Cyber 1% are the most at risk and require the most protections. 

It is no longer “if,” it is “when,” you must be prepared.