Until about four or five years ago, cybersecurity insurance was rare, but now it’s becoming increasingly more common, and necessary. The FBI, for instance, reported a 400% increase in cyberattacks in 2020. In one recent incident reported by Angela Morris, a Russian cyber gang hacked Miami-based software company Kaseya in a ransomware attack that impacted about 70 of its customers—managed service providers with multiple downstream customers, according to The Associated Press. Up to 1,500 small businesses like restaurants or accounting firms might be impacted, reported CNN.
Many insurers are focused on ransomware cases like these, but work-from-home (WFH) has created other vulnerabilities that collectively could lead to claims damages higher than a single ransomware attack, according to a recent story by Yakir Golan, co-founder and CEO of Kovrr, which develops predictive cyber risk modeling solutions.