{"id":29277,"date":"2022-08-19T13:36:46","date_gmt":"2022-08-19T13:36:46","guid":{"rendered":"https:\/\/easydmarc.com\/blog\/?p=29277"},"modified":"2026-03-13T09:54:04","modified_gmt":"2026-03-13T09:54:04","slug":"dmarc-and-cyber-insurance","status":"publish","type":"post","link":"https:\/\/easydmarc.com\/blog\/dmarc-and-cyber-insurance\/","title":{"rendered":"DMARC and Cyber Insurance"},"content":{"rendered":"

Cybercrimes are common threats to organizations, leading to financial losses, legal fines, and disrupted business operations that can destroy reputations and businesses.\u00a0<\/span><\/p>\n

According to the <\/span>Cyberthreat Defense Report (CDR)<\/span><\/a>, over 89.7% of businesses in the United States have experienced a cyberattack within 12 months, which is a 6.7% increase compared to 2020.\u00a0<\/span><\/p>\n

CyberEdge reports that 63% of <\/span>ransomware attack<\/span><\/a> victims paid the ransom, encouraging cyberactors to increase their attacks. Furthermore, cyberattacks have cost most US organizations millions of dollars in remediation.\u00a0<\/span><\/p>\n

Based on a 2021 <\/span>report from Sopho<\/span><\/a>s, the average cost of a ransomware attack was around $761,000 in 2020, which increased by 50% in 2021 to a whopping $1.85 million.\u00a0<\/span><\/p>\n

Another <\/span>report from Coalition<\/span><\/a>, a US-based cyber insurance firm, stated that a large proportion (around 54%) of insurance claims within the first half of 2021 were due to social engineering or <\/span>Business Email Compromise<\/span><\/a> attacks.\u00a0<\/span><\/p>\n

Large organizations aren\u2019t the only ones susceptible to attacks, though; cybercriminals also target small and medium-sized businesses (SMBs).\u00a0<\/span><\/p>\n

A successful cyberattack can be devastating, put your customers at risk, and severely harm your company. That\u2019s why implementing a robust <\/span>cyber insurance<\/b> policy can be an intelligent decision for organizations to curb cybercrime.\u00a0<\/span><\/p>\n

In this post, we\u2019ll discuss what <\/span>cybersecurity insurance<\/b> is and how it works. We\u2019ll also cover the importance of <\/span>DMARC <\/b>in this context and why it\u2019s vital to email and overall cybersecurity. Let\u2019s dive in!<\/span><\/p>\n

What is Cyber Insurance?<\/b><\/h2>\n

When it comes to the cost of remediating cyberattacks, we\u2019re talking billions. But not all organizations can bear the hefty expenses. For that reason, providers offer insurance policies tailored to the evolving cybersecurity needs of their clients.\u00a0<\/span><\/p>\n

While you\u2019re responsible for your company\u2019s cybersecurity, having <\/span>cyberinsurance<\/b> provides the necessary support to ensure business continuity.<\/span><\/p>\n

Cyber insurance<\/b>,<\/span> cyber liability insurance<\/b>, or cyber risk insurance is a product companies can purchase to reduce the costs involved with recovery from <\/span>social engineering attacks<\/span><\/a>, BEC, ransomware, <\/span>data breaches<\/span><\/a>, and other forms of cybercrime.\u00a0<\/span><\/p>\n

Before you insure your company against cybercrime, consult an insurance broker to determine the best policy for your business. By doing so, you\u2019ll know if you should opt for third-party coverage, first-party coverage, or both. <\/span>Cyber insurance<\/b> policies may include automatic coverage or other provisions tailored to your specific needs.\u00a0<\/span><\/p>\n

First-party coverage only covers costs incurred directly by your company following a successful cyberattack. Meanwhile, third-party coverage addresses costs from claims made by companies or clients affected by your activity or inactivity in a cyber event.\u00a0<\/span><\/p>\n

How Does Cyber Insurance Work?<\/b><\/h3>\n

Cyber insurance<\/b> works similarly to other aspects of business insurance. It encompasses re-insurers, insurers, and brokers. To start the cyber insurance journey, your organization needs to work with a broker who will gather quotes from various insurers and find you the best, most cost-effective solution.<\/span><\/p>\n

What Does Cyber Insurance Cover?<\/b><\/h3>\n

Cyber insurance<\/b> policies vary among providers, and they\u2019re usually based on business needs. So there are no standardized <\/span>cyber insurance<\/b> policies. However, some common issues that <\/span>cyber insurance<\/b> should address include:<\/span><\/p>\n