Cyber Insurance: What It Covers (and Why an MSSP is Still Necessary) 

Written By Hina Riaz

Cyber insurance provides financial protection against the aftermath of cyberattacks, covering costs like data breaches and ransomware that average $3.86 million per incident in 2025. With the global market reaching $20.56 billion this year and 62% of firms now insured (up from 49% in 2024), policies help mitigate recovery expenses—but they do not prevent attacks or reduce premiums without strong defenses.  

What Cyber Insurance Typically Covers 

Policies vary but generally include first-party (direct business losses) and third-party (liability to others) coverage:  

  • Data Breaches and Incident Response: Forensic investigations, notification costs, and credit monitoring for affected individuals. 

  • Ransomware and Extortion: Payments (where allowed), decryption tools, and recovery efforts; ransomware drives 60% of large claims.  

  • Business Interruption: Lost revenue from downtime during recovery. 

  • Legal and Regulatory Fines: Defense costs, settlements, and penalties for non-compliance (e.g., GDPR, HIPAA). 

  • Reputation Management and Third-Party Claims: PR support and lawsuits from customers or partners. 

Exclusions are tightening, often denying claims for outdated software, unpatched systems, or poor cybersecurity hygiene, pushing premiums up 15-20% annually.  

Why Businesses Still Need MSSPs for Proactive Security 

Cyber insurance is reactive—it pays after damage occurs and increasingly requires proof of robust security (e.g., MDR, EDR) for coverage or lower rates, with proactive measures cutting premiums by up to 20%. MSSPs provide essential prevention that insurance cannot:  

  • Continuous Threat Monitoring and Detection: 24/7 SOCs identify threats early, reducing breach likelihood and claim frequency (down 50% in 2025).  

  • Incident Response and Remediation: Rapid containment minimizes downtime and costs, preserving insurability. 

  • Compliance and Risk Management: Automated audits and frameworks ensure policies remain valid amid stricter underwriting.  

  • Advanced Defenses: AI-driven tools combat ransomware (33% of claims from manufacturing) before escalation.  

Without MSSPs, businesses face higher premiums, claim denials, and uninsurable risks in a market projected to hit $30 billion by 2030.  

Conclusion 

Cyber insurance safeguards finances post-breach but demands proactive security for viability. MSSPs deliver the prevention, monitoring, and response that keep attacks at bay, ensuring coverage remains affordable and effective. 

Strengthen Your Defenses with CyberSecOp 

Combine cyber insurance with CyberSecOp’s MSSP services for comprehensive protection and premium savings. 

  • Customer Service: 1 866-973-2677 

CyberSecOp assists organizations with Cyber Security and Privacy Consulting Services, providing services such as Cyber Security Program, Data Privacy Security Program, and Cyber Security Assessment services based on the following: NIST, ISO 27001, GDPR, CCPA, HIPAA, PCI, CMMC, GLBA amongst others. Don’t risk regulatory fines. Stay compliant with CyberSecOp Security Compliance and Cyber Incident Response Services. For More Information Call 866-973-2677

CyberSecOp an award winning cybersecurity consulting company, Click here to find out more.

Hina Riaz
Previous

Deepfake Fraud: How Cybercriminals Are Using AI to Impersonate Executives
Next

Cyber & AI Leadership Summit In-person EventIn Collaboration with Global CISO Leadership Foundation