We know a nonprofit that paid $2,500 for a cyber insurance policy a little more than two years ago. When they were breached, the insurer paid out the $50,000 lost because of downtime and unrecoverable software and data. The money was essential aid when it was most needed. Isn’t that the point of getting any kind of insurance?
Unfortunately, suffering a breach can deem you a risk for insurance companies, marking you as negligent and costly. Unless you can prove you’re taking steps to heighten security, you could easily be in danger of losing your cyber policy.