Businesses Struggle with getting Cyber Insurance

US businesses are facing significant challenges in obtaining cybersecurity insurance due to rising premiums and restrictive policies. Experts highlighted the complexity and variability of insurance terms, particularly for smaller operators. Cyber insurance policies are difficult for companies to interpret and understand their coverage. The increasing threat of state-sponsored cyberattacks on critical infrastructure raises concerns about whether current policies will cover damages linked to such conflicts.

The difficulty in modeling the impact of cyberattacks has led to higher premiums and calls for a federal “backstop” to guarantee large-scale insurance losses. However, creating such a mechanism faces significant challenges. The Biden administration’s national cybersecurity strategy indicates an interest in exploring the option, but implementation remains distant.