Cybercrime rose last year by 11%. Clients are aware that it’s no longer a matter of if they get attacked, but when. In fact, cybercrime is set to cost companies $5 trillion in 2020. Companies are investing an unprecedented amount—between $7.5-$10 billion this year—in liability insurance. Yet, when disaster strikes, rarely do these companies receive payouts. Why?
Cyber liability insurance companies offer payouts that only cover 2% of millions incurred in damages. Because the market is new and unregulated, the risk of wide-range multiple attacks across insurance customer is high. Add to that the blurred lines between property, auto, and cyber risk, and you get insurance companies that are hesitant to deliver payouts.