You never realise how damaging a cyberattack is until you are hit by one. Whether it is a ransomware lockdown or data theft, a cyberattack can turn your entire business upside down. The implications are not just short-lived, like operational disruption, but also long-term, like loss of customer trust, reputational damage, legal complications, and massive financial setbacks. Sometimes, it takes months, if not years, for organizations to recover from it.

So what should you do?

Considering how rampant and sophisticated cyberattacks are becoming lately, with around a 38% rise in cyber risk in 2025, it is not just about defence; it is about being prepared for when, not if, something goes wrong. You need a contingency plan, like cyber insurance, that helps you mitigate the blow of such attacks and recover faster.

One thing you should know about cyber insurance is that it won’t make you immune to these attacks, but it will help you cover the costs, like fixing your systems, managing legal fees, etc.

In this article, we will dig deeper to understand the role and relevance of cyber insurance in 2025 and what underwriters are now expecting from businesses.

Why Does Cyber Insurance Matter More Than Ever in 2025?

It’s 2025, and the business world is more competitive than ever. The last thing you want is to be held back by a cyberattack. Yet that’s exactly what’s happening to many organizations. Global cybercrime losses are currently estimated to hit as much as $9.5 trillion, showing just how severe the threats have grown. Meanwhile, the cyber insurance market reached $15.3 billion in 2024. Although it might seem like a huge number, it is just 1% of the global premium volume for Property and Casualty insurance in 2024.

This means we’re still far behind in terms of protection, especially when the stakes are so high.

Here’s why you should consider investing in cyber insurance in 2025:

If your company is targeted by a cyberattack, the expenses can quickly mount. You may have to repair damaged systems, restore lost data, deal with legal issues, notify customers, and even pay fines. And if the attack causes a prolonged downtime, you could lose a significant amount of money. Cyber insurance pays for all of this. It covers many of the costs, so you don’t have to cover everything yourself.

It’s important to understand that cyber insurance won’t stop an attack from happening. But it can help you get back on your feet faster. It gives you peace of mind, knowing that if something does go wrong, you have support in place to handle it. In today’s world, where everything runs on digital systems, that kind of backup is no longer a luxury—it’s becoming a necessity.

Let’s take an example. In 2011, Sony’s PlayStation was hacked by attackers who gained access to personal information of 77 million users. This attack led to a site shutdown for 23 days, and Sony ended up paying more than $171 million to repair the damage. If Sony had cyber insurance, they wouldn’t have had to pay all those costs themselves.

So, if a big company like Sony can be hit that hard without cyber insurance, just think of how a small or medium-sized business would deal with an attack like this?

What Do Underwriters Want in 2025

These days, underwriters are not just giving away coverage; they make sure that your business has strong cybersecurity measures in place before they agree to insure you. This means that you can no longer expect them to provide you with a safety net just because you meet a few of their requirement. With cyber insurance, compliance is key.
Here’s what they are asking for:

●     Security Awareness Training

One of the most common reasons for cyberattacks is a lack of awareness among employees. It is often one employee who clicks on a malicious link or opens up a spoofed email. This is why security awareness training is now a must-have for most insurers. According to a survey, almost 81% of the underwriters now require companies to train their employees. This includes teaching your employees how to spot fraudulent emails, phishing scams, and other malicious tactics that hackers use.

●     Multi-Factor Authentication (MFA)

We all know that passwords alone aren’t safe enough to protect you and your organization. Even insurance companies recognize this. That’s why about 79% of them require you to implement MFA across critical systems like email, cloud apps, and remote access. MFA adds an additional level of protection with one-time passwords or mobile app verifications, so even if an attacker manages to steal your login credentials, it will still be harder for them to gain access.

●     Endpoint Detection and Response (EDR)

EDR is a tool that keeps an eye on your computers and devices for anything unusual or suspicious. If something doesn’t look right, such as ransomware spreading, it can alert you or even block the threat.

65% of insurers now demand that you implement this type of monitoring. You can either do this in-house or perhaps get a dedicated security service like MDR—Managed Detection and Response, to do it for you. Either way, insurers want to know that someone is keeping an eye on things at all times.

●     Vulnerability Management

We understand that all systems have weak spots and hackers look for those to break in. But it is important you stay on top of these vulnerabilities. 65% of insurers now insist on you scanning for vulnerabilities and patching with software updates. Some may even demand evidence, such as patch logs, to demonstrate you’re not ignoring updates. It’s all about locking the doors before the intruders find an open window.

●     Air-Gapped Backups

Air-gapped backups are backups of your data that are stored offline or somewhere hackers can’t access them. So if ransomware locks you out of your systems, you can still restore your files without paying. 33% of insurers now ask for this kind of backup, although it’s not yet mandatory for all. But having this in place shows you’re truly thinking ahead. It’s like having a fire exit—you hope you never have to use it, but it’s there just in case.

Did you like what you just read, and do you think your audience will too?

Hi, I’m Daksh Kaur, and I write content that simplifies the technical cybersecurity concepts and speaks directly to your audience’s needs. Reach out to me at daksh@turtlewords.com and let’s discuss how we can work together to create blogs that not only inform but also convert prospects into clients.