Cybersecurity Insurance

In today’s world, technology has become an integral part of almost every business, especially startups. While this has brought many benefits, it has also increased the risk of cyberattacks. Tech startups are particularly vulnerable to cybercrime due to their reliance on technology and the data they handle. The cost of a cyberattack can be astronomical, causing irreparable damage to a startup and its reputation. Thankfully, cyber insurance can help alleviate some of this risk. This article will explore the importance of cyber insurance for tech startups, the types of coverage available, and the role of cyber insurance in post-incident recovery. Understanding Cyber Insurance In today’s digital age, cyber threats are becoming increasingly common and sophisticated. Cybercriminals are constantly finding new ways to exploit vulnerabilities in businesses’ IT systems, steal sensitive data, and cause disruption. As a result, businesses of all sizes and types are at risk of cyber incidents, which can have serious financial and reputational consequences. What is Cyber Insurance? Cyber insurance is a type of insurance that covers businesses for losses sustained due to cyber-related incidents such as data breaches, cyber-attacks, and cyber-terrorism. Essentially, it provides financial protection in the event of a cyber incident. Cyber insurance policies can vary in their coverage and can be tailored to meet the specific needs of a business. The Importance of Cyber Insurance for Tech Startups Tech startups are among the businesses that require the most protection from cyber threats. Their reliance on technology and the vast amounts of sensitive data they handle make them prime targets for cybercriminals. A successful cyber attack can disrupt a startup’s operations, damage its reputation, and cause significant financial losses. For tech startups, cyber insurance can help mitigate these risks by providing financial support, legal assistance, and regulatory compliance. In the event of a cyber incident, cyber insurance can cover the costs associated with investigating the incident, notifying affected parties, and restoring data and systems. It can also provide coverage for business interruption losses and liability claims brought against the startup by third parties. Read Next: Why Remote Workers Create Cyber Attack Exposure Types of Cyber Insurance Coverage Cyber insurance coverage varies among providers and can be tailored to suit the specific needs of a tech startup. Broadly speaking, there are two types of cyber insurance coverage: first-party coverage and third-party coverage. First-party coverage covers the expenses incurred by the business itself as a result of a cyber incident. This may include expenses related to data breach notifications, crisis management, public relations, and legal fees. First-party coverage can also provide coverage for loss of income due to business interruption caused by a cyber incident. Third-party coverage covers the claims brought against the startup by clients, customers, or other third parties who have been affected by a cyber incident. This may include expenses related to legal fees and settlements. Third-party coverage can also provide coverage for regulatory fines and penalties resulting from a cyber incident. In addition to these two types of coverage, cyber insurance policies can also include coverage for specific types of cyber incidents, such as ransomware attacks, social engineering attacks, and denial-of-service attacks. Tech startups need to work with an experienced insurance broker to identify their specific cyber risks and ensure that their cyber insurance policy provides adequate coverage. Assessing the Risks and Vulnerabilities Common Cyber Threats Faced by Tech Startups Tech startups are at the forefront of innovation, but they also face a wide range of cybersecurity threats. As technology continues to advance, so do the tactics of cybercriminals. Some of the most common threats faced by tech startups include: Phishing scams: These scams involve attackers tricking employees into providing sensitive information, such as passwords or credit card numbers. Phishing attacks are often carried out through email or social engineering tactics, and they can result in significant financial losses for startups. Malware attacks: Malware is a type of harmful software that can be used to steal data or cause damage to systems. Malware attacks can be carried out through email attachments, infected websites, or other means. Once a system is infected, it can be difficult to remove the malware and restore the system to its previous state. Denial of Service (DoS) attacks: DoS attacks involve attackers bombarding a website or server with traffic, causing it to crash and become unavailable for legitimate users. DoS attacks can be carried out using botnets, which are networks of infected computers that can be controlled remotely. Insider threats: Insider threats come from employees with access to sensitive data who intentionally or unintentionally cause harm to the company. These threats can take many forms, including stealing data, installing malware, or accidentally exposing sensitive information. Identifying and Prioritizing Risks Identifying and prioritizing risks is an essential step in developing a cybersecurity strategy. Tech startups should conduct a thorough risk assessment to gauge the potential impact of a cyber incident and develop a plan to mitigate these risks. This assessment should take into account the types of data handled by the startup, the potential risks of a data breach, and the cost of recovery. During a risk assessment, startups should consider the following questions: What types of data does the startup handle? What are the potential risks associated with a data breach? What is the cost of recovery in the event of a cyber incident? What are the most likely scenarios for a cyber attack? By answering these questions, startups can gain a better understanding of their cybersecurity risks and develop a plan to mitigate them. Read Next: Why Every Small Business Needs Cyber Liability Insurance In 2026 Implementing a Risk Management Strategy Once risks have been identified, tech startups should implement a risk management strategy. This strategy may include implementing firewalls, encryption, and other security measures to prevent breaches, as well as creating a response plan in the event of an incident. Startups should also focus on employee education and training to prevent human error and reduce the risk of insider threats. This can include training employees on how to identify phishing scams, how to create strong

Owning a tech startup is both exciting and daunting. Growing your business, creating innovative products, and winning customers are top priorities. However, protecting your company from cyber threats must be at the forefront of your concerns. Failure to do so could result in devastating financial and reputational losses. Understanding the Cyber Threat Landscape The world of cybersecurity is constantly evolving, with sophisticated threats becoming increasingly common. Ransomware, phishing attacks, and insider threats are just a few examples of the dangers your tech startup may face. As technology continues to advance, the risk of cyber attacks continues to grow. Cybercriminals are becoming more creative and sophisticated in their approach, making it essential for your tech startup to stay informed and take proactive steps to protect your business. Ransomware: Holding Your Data Hostage Ransomware is malicious software that locks you out of your data or systems until a ransom is paid. The consequences of a ransomware attack can be dire, from losing your data to shutting down your entire business. What’s more, cybercriminals are becoming more creative in their approach to ransomware attacks. They often demand payment in cryptocurrencies, such as Bitcoin, to make it harder to trace the payments. It’s important to note that paying the ransom does not guarantee that your data will be restored, and it may even encourage further attacks. The best defense against ransomware is prevention, through regular backups, software updates, and employee education. Phishing Attacks: Deceptive Emails and Websites Phishing is a technique used by cybercriminals to trick individuals into sharing sensitive information. Fraudulent emails and websites are designed to look like genuine communications or legitimate sites, which can make them hard to detect. Phishing attacks can lead to significant financial and reputational losses. For example, hackers can steal your startup’s financial information, customer data, or intellectual property. To protect against phishing attacks, it’s important to educate your employees on how to identify and report suspicious emails and websites. Additionally, implementing multi-factor authentication and using anti-phishing software can help mitigate the risk of a successful attack. Read Next: The Art Of Cyber Resilience: How Cyber Insurance Supports Business Continuity For Tech Startups Insider Threats: The Risk Within Your Organization Insider threats are risks posed by insiders, such as employees, contractors, or partners who have access to your startup’s sensitive information. These risks can include unintentional errors, malicious activities, or accidental disclosures. Insider threats can lead to significant financial losses and reputational damage. It’s essential to implement effective policies and procedures to mitigate these risks. One way to mitigate the risk of insider threats is to limit access to sensitive information on a need-to-know basis. Additionally, conducting background checks on employees and monitoring access to sensitive data can help detect and prevent malicious activity. Emerging Cyber Threats: Staying Ahead of the Curve As technology advances, cybercriminals are developing new ways to launch cyber attacks. Emerging threats, such as artificial intelligence-powered attacks, social media fraud, and Internet of Things (IoT) vulnerabilities, should be on your radar. Your tech startup needs to be aware of these emerging threats and take proactive steps to safeguard against them. This includes staying up-to-date on the latest security trends and implementing advanced security measures, such as network segmentation and threat intelligence. By staying informed and taking proactive steps to protect your business, you can mitigate the risk of cyberattacks and keep your tech startup secure. The Importance of Cyber Insurance for Tech Startups Cyber insurance is an essential layer of protection for your tech startup. It can offer financial protection and crisis management services in the event of a cyber-attack or data breach. As a tech startup, you are likely handling sensitive data, including customer information, financial data, and intellectual property. This makes you a prime target for cybercriminals who seek to exploit vulnerabilities in your network security. Without proper protection, a cyber attack or data breach could have devastating consequences for your business. Read Next: Why Remote Workers Create Cyber Attack Exposure Protecting Your Business from Financial Loss If your startup falls victim to a cyber attack, the financial losses can be significant. In addition to the costs associated with repairing the damage to your network and systems, you may also be liable for damages to third parties, such as customers or partners whose data was compromised. Cyber insurance policies can provide coverage to help you recover from these losses and get your business back on track. This can include reimbursement for expenses related to data recovery, legal fees, and even lost revenue due to business interruption. Ensuring Business Continuity Cyber attacks can disrupt your business operations, leading to lost revenue and productivity. With cyber insurance, you can access services to help you quickly resume normal operations and avoid business interruption. For example, some cyber insurance policies offer access to IT specialists who can help you identify and address vulnerabilities in your network security. This can help you prevent future attacks and minimize the impact of any future incidents. Safeguarding Your Reputation A cyber attack can damage your startup’s reputation, leading to a loss of trust among customers, investors, and partners. This can have long-term consequences for your business, including decreased sales and difficulty attracting new customers or investors. Cyber insurance policies can offer access to public relations and crisis management services to help you manage reputational risks in the aftermath of an attack. This can include assistance with communicating with customers, partners, and the media, as well as developing a plan to restore trust and rebuild your brand. Meeting Regulatory and Compliance Requirements Many industries have strict regulations and compliance requirements related to data privacy and protection. Failure to comply with these requirements can result in costly penalties and legal action. Cyber insurance can help your tech startup meet these requirements and avoid costly penalties. For example, some policies offer coverage for fines and penalties associated with regulatory violations, as well as assistance with complying with data protection regulations. Overall, cyber insurance is a crucial investment for any tech startup that handles sensitive

Ransomware is big business. In 2017, ransomware resulted in $5 billion in losses in terms of ransoms paid, spending, and lost time in recovering from attacks.  That’s up 15 times from 2015.  Ransomware is a form of malware that encrypts a victim’s files. The attacker then demands a ransom from the victim to restore access to the data upon payment.  While there are cyber risk management practices you can put in place, your last and often most effective line of defense is cyber liability insurance. What is Ransomware? Ransomware is malware (a computer virus) that encrypts a victim’s files. Essentially, your computer and/or network systems become unusable. The attacker then demands a ransom from the victim to restore access to the data upon payment. When business owners agree to pay, they are given a decryption key to unlock their systems. The costs can range from a few hundred dollars to thousands (or even hundreds of thousands), payable to cybercriminals in Bitcoin. With ransomware attacks on the rise, the role of insurance is becoming more robust. So much so that ransomware coverage, which has traditionally been an endorsement within cyber liability policies, has been approved as a stand-alone cyber policy by some insurance carriers. Who is a target for ransomware? There are many different reasons for why cybercriminals choose the businesses they target with ransomware. Sometimes it’s a matter of opportunity: for instance, attackers might target universities because they tend to have smaller security teams and a wide-spread, remote user base that does a lot of file sharing, making it easier to penetrate their defenses. Some organizations are tempting targets because they seem more likely to pay a ransom quickly. For instance, government agencies or medical facilities often need immediate access to their files. Law firms, accounting firms, and other organizations with sensitive data may be willing to pay to keep the news of a ransomware attack quiet and pay quickly because of the reputational hit. How Does Ransomware Work? There are several different versions of ransomware attacks. One of the most common delivery systems is phishing spam. These attacks involve attachments that come to the victim in an email, masquerading as a file they should trust. Once the file is downloaded and opened, the executable file can take over the victim’s computer, especially if they have built-in social engineering tools that trick users into allowing administrative access. There are also more aggressive forms of ransomware that can exploit gaps in computer security to infect computers without needing to trick users. What Does Ransomware Do Inside Your System? Once ransomware has taken over your computer, the most common action is to encrypt some or all of your files. You then cannot access your files without a mathematical key known only by the attacker. You are then presented with automated messaging explaining that your files are now inaccessible and will only be decrypted if you send an untraceable Bitcoin payment to the cybercriminal. According to CS Online, other forms of ransomware will claim to be a law enforcement or government agency shutting down your computer due to the presence of pornography or illegal software and demanding the payment of a “fine.” There are also attack variations, called leakware, in which the attacker threatens to publicize sensitive data on your hard drive unless a ransom is paid. What to Look for in Ransomware Coverage Ransomware (whether including in a cyber liability policy or as a stand-alone), is NOT a standardized coverage. This means what is covered and how it is covered can vary wildly from policy to policy. The key is to look for ransomware coverage that uses broad terminology and protects against a wide range of threats. Here are a few threats you want your ransomware policy to cover: Access, sell, disclose or misuse data stored on your network, including digital assets. Alter, damage, or destroy software or programs. Introduce malicious software, including viruses and self-propagating code. Impair or restrict access. Look for policies with broad terms like “threats to disrupt business operations.” Impersonate the insured to gather protected information from its clients, also known as pharming or phishing. Use your network to transmit malware. Deface or interfere with your company’s website. Ransomware Coverage Policy Terms Since cyber insurance isn’t standardized, choosing a plan that effectively covers ransomware can be a challenge. Policies can vary substantially in their language and coverage options, so we recommend policies that, at a minimum, provide coverage for extortion demands and payments as well as lost income resulting from an attack. Here are a few terms and definitions particular to ransomware that you should be aware of: Sub-limits and deductibles—Most policies set a sub-limit for covering ransomware. It is important to review this limit carefully, considering that demands may start on the low side but can increase quickly. Payment terms—Most policies require written consent before the insured can pay any ransom. This can result in payment delays and increased demands by hackers. If an organization pays a ransom to resume business without prior written consent by the insurer, there’s a chance that it may not be reimbursed. Definition of extortion—It is important for organizations to fully understand and agree with their insurance company’s definition of extortion, since the definition dictates the coverage trigger. Understanding the differences between standard insurance policy language and the language specific to a ransomware policy is why choosing the right insurance professional for your cyber insurance is so important. Many nuances can be lost on the generalist. The Rub Ransomware is a growing problem. This has never been truer with businesses moving to remote work in record numbers. While some types of businesses are at higher risk (45% of all ransomware attacks target healthcare organizations), no one is safe if cybercriminals view your business as an easy target. Anti-virus software and solid risk management is not enough. To protect the longevity and sustainability of your business, you need a cyber liability policy that includes ransomware as a backstop in the event an attack. At Weinsurexyz, we specialize in cyber insurance, work with

Cyber Liability Insurance is the answer. Get a Cyber Liability insurance quote Not all cyberinsurance policies and coverage extensions are created equal. At Weinsurexyz, we write cyber liability with only the top-rated insurance carriers, including Chubb, Hanover, Cincinnati and others we’ve spent time vetting against the highest industry standards. Our cyber liability specialists will match your business with the insurance carrier and coverage that fit your unique business needs and budget. Getting a quote is free, there is no obligation, and it can often be turned around in minutes. Don’t delay, fill out the form on this page and get started today. We look forward to working with you! When cyber attacks like phishing, data breaches and hacks occur, they can result in devastating damage. Without cyber liability insurance you will be on your own to deal with business interruptions, lost revenue and the expense of resulting litigation against your business. With cyber liability insurance, you can take the attack in stride, dealing with challenges and obstacles while maintaining the similarly strong financial position you enjoy today. Benefits of Cyber Liability Insurance Coverage Cyber liability insurance policies are tailored to meet your company’s specific needs and can be robust in the benefits offered in the event of a loss, including but not limited to: Data Breach Coverage – In the event of a breach, you are required by law to notify affected parties. This cost can add up security fixes, identity theft protection and resulting legal action. Cyber liability includes coverage for these exposures. Business Interruption Loss Reimbursement – Cyber attacks often lead to significant lost time and money. Cyber liability can cover your loss of income during these interruptions. Cyber Extortion Defense – Ransomware and malicious software is designed to steal and withhold key data from your business until you pay a “ransom” fee to get it back. Cyber liability can help recoup losses related to these attacks. Legal Support – In the wake of a cyber attack, your business will most likely need to seek legal assistance (which can be costly). Cyber liability can help you afford the proper legal work necessary to get your business back on track. These are just the major benefits. Other protections can include: System Failure Coverage, Social Engineering & Cyber Crime Coverage, Reputational Loss Coverage, and the list goes on. Top Cyber Liability Insurance Carriers Cyber liability insurance carriers come in two forms: full-spectrum national (or international) carriers, which offer cyber products, and niche (or specialty) carriers that focus on cyber specifically. At Weinsurexyz, we match your unique cyber liability needs to the insurance carrier that can best defend your business. Chubb Insurance – Chubb is a leading commercial lines insurer in the US and the largest financial lines writer globally. The company has operations in 54 countries and territories. The Hanover – Having the right cyber coverage is critical, and The Hanover has multiple cyber coverage options, including endorsements to package policies as well as stand-alone programs. Cincinnati Insurance – Through Cincinnati Insurance, you can tailor your coverage through our three options: Cincinnati Data Defender™, Cincinnati Network Defender™, and Cincinnati Cyber Defense™. Axis Capital – AXIS Capital Holdings delivers specialty insurance and reinsurance solutions to clients around the world through its insurance subsidiaries. The Hartford – The Hartford is a leader in property and casualty insurance, group benefits, and mutual funds. The company sells its products primarily through a network of independent agents and brokers. Its cyber liability and data breach insurance coverages are stand-alone policies but can be added to existing business owners’ and general liability policies from the company. AXA XL – AXA is a multinational insurance and asset management company that operates in 62 countries. AXA XL, the company’s specialty risk division, provides insurance for more than 30 lines of business, including cyber. Coalition Insurance – Coalition currently has more than 10,000 customers who have insured over $12 billion of their risk. Corvus Insurance – Corvus has built Smart Commercial Insurance Products: policies built on data-driven underwriting and a deep understanding of the industry. Evolve MGA – Evolve MGA is a team built on common-sense-driven, technology-focused, highly educated individuals striving to bring a modern-day product out of a traditional industry. One thing to note is that cyber liability insurance is not a standardized policy form. This means there can be a wide variance in policy language and coverage options between different insurance carriers. This makes working with a cyber liability insurance expert even more important. The Cost of Cyber Liability Insurance The average cost of cyber liability insurance in the United States was $1,501 per year for $1 million in liability coverage, with a $10,000 deductible, according to a 2019 study done by AdvisorSmith Solutions Inc. However, just like coverage options, the cost of cyber liability insurance can vary widely depending on different rating factors. At Weinsurexyz, we’ve written cyber insurance policies as low as $500 a year and have clients paying more than $20,000 a year. Here are a few of the factors that will impact the cost of cyber liability insurance: Size of the business Type of cyber exposure Cyber carrier chosen Coverage options chosen Cyber loss history Prevention measures and security As with all insurance, your goal should be to maximize the coverage you need, self-insure the coverage you don’t and optimize for cost by partnering with the right cyber insurance carrier. GET A CYBER INSURANCE QUOTE Click the button below and enter a few details to get a price indication in 5 minutes. Cyber Liability in plain language Let’s talk in plain language real quick… Cyber liability insurance is quickly becoming as necessary an insurance policy as general liability or property coverage. The recent world pandemic, Coronavirus (COVID-19) has pushed more employees to remote work, creating even more opportunities for hackers to exploit vulnerabilities in your technology. No one expects you to be a cyber attack guru. You run a business, and even if that business is technology-related, something as simple as an employee forgetting to reset a generic password could cost you

In today’s connected world, the threat of cyber attacks is real and growing. As a New York Startup, your business is particularly vulnerable to cyber threats – even a single breach could be catastrophic. That’s why cyber insurance is essential for your startup. In this article, we explore everything you need to know about cyber liability insurance for New York startups. Understanding Cyber Liability Insurance Cyber liability insurance is a relatively new type of insurance policy that covers businesses against losses caused by cyberattacks. The policy typically provides coverage for things like data breaches, cyber extortion, and loss of income due to downtime. As more and more businesses move their operations online, the need for cyber liability insurance has become increasingly important. Cyber attacks can happen to any business, regardless of size or industry, and the costs associated with these attacks can be devastating. That’s why it’s important to understand what cyber liability insurance is and how it can help protect your business. What is Cyber Liability Insurance? Cyber liability insurance is designed to protect businesses against losses caused by cyberattacks. This type of insurance policy provides coverage for a range of cyber risks, including data breaches, extortion, and loss of income due to downtime. It’s important to note that cyber liability insurance doesn’t just cover the direct costs of a cyber attack; it can also cover the indirect costs, such as business interruption and reputational damage. For example, if your business suffers a data breach and sensitive customer information is stolen, cyber liability insurance can help cover the costs associated with notifying affected customers, providing credit monitoring services, and hiring a public relations firm to manage the fallout. Types of Cyber Liability Insurance Coverage Cyber liability insurance policies can vary widely in terms of what they cover. Some policies may only cover a few specific types of cyber risks, while others may provide broader coverage. The four main types of cyber liability insurance coverage are: Third-party coverage: Covers claims made against your business by third parties, such as customers or suppliers, as a result of a cyber-attack. First-party coverage: Covers losses directly incurred by your business as a result of a cyber attack, such as data recovery costs and loss of income due to downtime. Network security liability coverage: Covers claims made against your business for failure to prevent a cyber attack. Errors and omissions coverage: Covers claims made against your business for professional errors or omissions, such as failing to properly secure client data. It’s important to carefully review the coverage provided by any cyber liability insurance policy you are considering to ensure that it meets the specific needs of your business. Key Benefits of Cyber Liability Insurance There are several key benefits to having cyber liability insurance for your startup: Protection against financial losses: Cyber attacks can be expensive, with costs ranging from lost revenue to lawsuits. Cyber liability insurance can help cover those costs, minimizing the financial impact on your startup. Peace of mind: Knowing that you have insurance coverage in place can help you sleep easier at night, knowing that your startup is protected against cyber threats. Compliance: Many industry regulations require businesses to have cyber liability insurance in place. For example, if your business handles sensitive customer data, you may be required to have cyber liability insurance to comply with data protection laws. Crisis management support: Many cyber liability insurance policies include access to crisis management services, which can help you respond quickly and effectively to a cyber attack. These services may include things like forensic investigations, legal assistance, and public relations support. Overall, cyber liability insurance is an important tool for any business that operates online. By providing financial protection and peace of mind, this type of insurance can help ensure that your startup is able to weather the storm of a cyber attack and emerge stronger on the other side. READ NEXT: How To Make Sure Ransomware Is Covered On Your Cyber Liability Policy The Growing Threat of Cyber Attacks The threat of cyber attacks is a rapidly growing concern for businesses of all sizes, including technology startups. As technology continues to advance, so do the methods of cybercriminals, making it increasingly difficult to protect against attacks. According to a recent report by the Ponemon Institute, the average cost of a data breach for a small business is $120,000. For a startup, this can be a significant financial burden, potentially even putting the company out of business. Common Types of Cyber Attacks on Startups There are several common types of cyber attacks that startups should be aware of: Phishing: Phishing attacks use social engineering to trick victims into giving up sensitive information. This can include things like fake emails or websites that look legitimate but are actually designed to steal sensitive data. Phishing attacks can be difficult to detect, as they often appear to be from a trusted source. Ransomware: Ransomware is a type of malware that encrypts your data and demands a ransom for the decryption key. Ransomware attacks can be devastating for startups, as they can result in significant downtime and data loss. It’s important to have a backup system in place to minimize the impact of a ransomware attack. DDoS: Distributed denial of service (DDoS) attacks flood your servers with traffic, making your website or online services unavailable to legitimate users. This can be particularly damaging for startups that rely on their website or online services to generate revenue. DDoS attacks can be difficult to prevent, but having a plan in place to mitigate the impact can help minimize the damage. The Cost of Cyber Attacks for Technology Startups The cost of a cyber attack can be extremely high for startups, both in terms of direct costs and indirect costs. Direct costs can include expenses such as data recovery and legal fees, while indirect costs can include things like lost revenue and damage to your reputation. In addition to the financial costs, a cyber attack can also have a significant impact on the morale of your team. If your

Human risk has become the #1 cybersecurity challenge for organizations today. Insider threats, credential misuse, and simple user mistakes are now responsible for the majority of security incidents — creating massive financial exposure. A recent report by KnowBe4 revealed that cybersecurity incidents involving human risk surged by 90% in 2025. These incidents often stem from social engineering attacks such as phishing and Business Email Compromise (BEC), as well as risky or malicious behavior and simple human error. According to the report, 93% of surveyed leaders experienced incidents caused by cybercriminals exploiting employees. Email continues to be the primary attack vector, with email-related incidents rising by 57%. In fact, 64% of organizations reported external attacks that targeted employees through email. Human Risk is the most significant vulnerability Human risk remains one of the most significant vulnerabilities. The report found that 90% of organizations experienced security incidents caused by employee mistakes. At the same time, malicious insiders remain a concern, contributing to incidents in 36% of organizations. As a result, 97% of cybersecurity leaders say increased budget allocations are needed to better protect the human element of security. The report also highlights the growing impact of artificial intelligence on cybersecurity. AI-related security incidents increased by 43% over the past year, marking the second-largest rise across all threat channels. Although 98% of organizations have implemented measures to address AI risks, cybersecurity leaders still rank AI-powered threats as their top concern, with 45% citing constantly evolving AI threats as their biggest challenge in managing behavioral human risk. Additionally, 32% of organizations reported a rise in incidents involving deepfakes. While most companies are taking steps to mitigate AI-related risks, 56% of employees are dissatisfied with their organization’s approach to AI tools. This dissatisfaction can push employees to use unauthorized platforms, creating “shadow AI” risks that further complicate cybersecurity efforts. According to the SOHR 2026 Report, based on a survey of 2,500 IT and security leaders across nine countries: • Human-driven incidents dominate breaches. Insider threats and user errors now cause most security events, with an average cost of $13.1M per incident. Organizations report about six insider-related incidents per month, creating nearly $943M in potential annual exposure. • Awareness isn’t translating into action. While 96% of organizations acknowledge gaps in protection and 91% struggle with compliance, only 28% implement both regular security awareness training and continuous monitoring. • AI-powered threats are rising rapidly. About 69% of security leaders expect AI-driven cyberattacks within the next year, yet only 40% feel fully prepared. • Collaboration and email risks remain high. – 71% expect business disruption from collaboration tool attacks in 2026 – 96% anticipate ongoing email security challenges • Data leaks via generative AI are a growing concern. – 80% worry about sensitive information leaking through AI tools – 60% say their organizations are not fully prepared for AI-related threats The takeaway: Technology alone isn’t enough. Organizations must adopt a human-risk management strategy that includes user-focused training, continuous monitoring, and AI-aware security policies. Protecting your business today means addressing the human factor in cybersecurity. Four types of risk in insurance The four main types of risks in general business/enterprise risk management, often relevant to insurance, are: Strategic risks Operational risks Financial risks Compliance risks Though some sources break down risks by pure vs. speculative, or focus on specific insurable areas like property, liability, health, and income loss. Pure risks (insurable) involve only loss, while speculative risks (not insurable) offer potential gain or loss, like gambling. Cyber insurance coverage can safeguard your company against the devastating financial consequences of a cyber attack. Weinsurexyz offers customized Cyber Liability Insurance solutions depending on your business’s level of risk. Cyber liability insurance policies generally cover lawsuits alleging that your firm is liable for denial of service attacks or a client’s inability to access a website or system as well as disclosure of the client’s confidential information, malicious or accidental loss of digital assets, or data, data tampering, unauthorized access to or use of data, introduction of viruses or malicious code, terrorism threats, cyber extortion, and certain other situations. These policies may also cover expenses associated with restoring data or systems, crisis management and public relations, regulatory action, notification, legal defense, and business interruption. Request a free quote. We will respond within 24 hours during the week and can begin your coverage that same day.  If you are unsure as to what insurance is best for your tech business needs, our licensed insurance agents can help. We’re open Monday to Friday from 9:00 a.m. to 5 p.m. Eastern Time. You may reach us at (888)-540-7374.