Inadequacies in Breach Insurance Coverage: A Data-Driven Gap Analysis

The cost of data breaches continues to rise due to numerous factors, including the increasing sophistication of cyberattacks, expanded reliance on digital infrastructure, and growing regulatory requirements and penalties. As a result, organizations are increasingly relying on insurance policies to mitigate the enormous potential cost of data breaches.

While breach insurance sounds like a good idea, this study reveals a stark reality: The protection afforded by cyber insurance often falls significantly short of the actual costs incurred from cyber incidents.

The study found that:

• 80% of insured companies that suffered a data breach did not have sufficient coverage
• The average coverage gap is 350%, which means that more than 75% of the incident was not covered.
• In some cases, the maximum insurance gap reached 3000%

Download this report to learn more about the extent of the coverage gap and how organizations can better plan their cyber insurance coverage.