Overview
Regularly reviewing cybersecurity insurance policies is a key strategy to stay protected against the latest risks, ensure compliance with current regulations, and identify coverage gaps. The threat landscape is constantly changing; for instance, the Verizon 2025 DBIR revealed that the percentage of breaches involving third parties doubled from 15% to 30% in 2025. Regular policy reviews and updates help ensure adequate coverage to accommodate an increase in third-party involvement in data breaches, including expanded coverage, third-party risk assessments, and enhanced policy limits due to the increased scale of potential third-party breaches.
Why it matters:
It's estimated that less than half of businesses actually have some kind of cyber security insurance policy in place, and it is often a reactionary measure after an incident occurs. For those that do, policy reviews and updates is a necessity as business grows and technology evolves. While the insurance industry continues to develop best practices and strategies related to emerging technologies and threats, such as generative AI and supply chain risks, it's essential to ensure coverage remains sufficient and current through consistent risk assessment. With the average cost of a data breach reaching $4.88 million in 2024 (IBM), maintaining up-to-date insurance coverage is vital to mitigate financial losses, and ensure robust protection against emerging threats.