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How to better provision for cybercrime damages

An organization’s Chief Information Security Officer (CISO) must guide cyber insurance procurement.

By Paul Caron | November 15, 2024 at 01:19 PM
Decoding cyber insurance policies is among the CISO’s duties. (Credit: Bartek/Adobe Stock)

Cyberattacks relentlessly target every sector, whether it’s industries still reliant on outdated legacy systems or those with the latest cutting-edge technology.Hospitals, banks, energy companies, retailers, manufacturers and logistics suppliers are all targeted and victimized. The reality is that no matter how advanced the industry, cybercriminals are finding vulnerabilities in the attack surface faster than the security experts can identify them. These attacks are not only growing in frequency but also becoming increasingly sophisticated. As a result, global cybercrime damages are projected to rise by 15% annually, Forbes reports, reaching a staggering $10.5 trillion USD by 2025.Cyber insurance offers organizations a crucial layer of protection amid the growing fears of data breaches and ransomware attacks. However, not all cyber insurance is created equal. It’s not a one-size-fits-all solution, nor is it an instant fix-all.Finding the right cyber insurance fit often hinges on an organization’s Chief Information Security Officer (CISO). It’s the CISO who comprehensively understands the risks the company faces and knows how to align those risks with the appropriate coverage. Let’s say there’s a retail company with a high volume of customer transactions, making it vulnerable to phishing attacks. In this case, the CISO should seek an insurance plan that specifically covers point-of-sale system vulnerabilities, third-party vendor breaches, and comprehensive ransomware response, rather than settling for a generic, off-the-shelf plan.

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