{"id":201688,"date":"2026-04-02T16:45:00","date_gmt":"2026-04-02T20:45:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/04\/02\/cybersecurity-expert-why-your-business-needs-this-one-thing-that-62-of-companies-already-have\/"},"modified":"2026-04-02T17:00:18","modified_gmt":"2026-04-02T21:00:18","slug":"cybersecurity-expert-why-your-business-needs-this-one-thing-that-62-of-companies-already-have","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/04\/02\/cybersecurity-expert-why-your-business-needs-this-one-thing-that-62-of-companies-already-have\/","title":{"rendered":"Cybersecurity Expert: Why Your Business Needs This One Thing That 62% of Companies Already Have"},"content":{"rendered":"

Cybersecurity Expert: Why Your Business Needs This One Thing That 62% of Companies Already Have<\/a><\/p>\n

https:\/\/www.cpapracticeadvisor.com\/2026\/04\/02\/cybersecurity-expert-why-your-business-needs-this-one-thing-that-62-of-companies-already-have\/180822\/<\/a><\/p>\n

Publish Date: 2026-04-02 16:45:00<\/a><\/p>\n

Source Domain: www.cpapracticeadvisor.com<\/a><\/p>\n

Author: <\/a><\/p>\n

Using an unordered list, summarize the following article with between 4 and 8 key points. <\/p>\n

AI-driven scams and cyberattacks are becoming more sophisticated, moving faster than most businesses can keep up with. From phishing emails generated by large language models to deepfakes of a CEO\u2019s voice authorizing fraudulent wire transfers, scammers are taking full advantage of both human error and machine deception.\u00a0<\/p>\n

According to Heimdal Security\u2019s latest cyber insurance statistics report, 62% of businesses worldwide now hold a cyber insurance policy, up sharply from 49% in 2024. This rapid rise shows a clear shift in mindset.\u00a0<\/p>\n

\u201cCyber insurance is no longer seen as optional; it\u2019s fast becoming a cornerstone of modern business resilience,\u201d says Danny Mitchell, cybersecurity writer at Heimdal Security. Below, Mitchell explains the reasoning and statistics behind this growing trend.\u00a0<\/p>\n

The rise of cyber insurance: A $20.56 billion market<\/p>\n

In 2025, the global cyber insurance market reached $20.56 billion. That\u2019s a significant milestone, though growth has slowed from the explosive 31% rate seen between 2017 and 2022.\u00a0<\/p>\n

The reason? A mature market, as more firms are already insured than ever before.<\/p>\n

Premiums are currently 6% lower than in 2024 and 22% lower than their 2022 peak. However, experts predict a rebound in 2026, with costs expected to jump between 15% and 20%.\u00a0<\/p>\n

\u201cThis fluctuation reflects insurers recalibrating after an era of intense ransomware losses,\u201d says Mitchell. \u201cWe\u2019ve reached a point where insurers finally understand cyber risk at scale. Prices dipped because claims fell, but as AI makes attacks faster and more targeted, expect those savings to disappear. What you save today on premiums could cost ten times more in the next data breach.\u201d<\/p>\n

Who\u2019s buying, and who\u2019s still hesitant<\/p>\n

While nearly two-thirds of global firms now have some form of cyber insurance, adoption varies by company size. According to Swiss Re, a leading insurance firm, 60% to 70% of large corporations (more than $1 billion in revenue) have coverage, compared with 40% to 50% of mid-market firms and just 10% to 20% of small and medium-sized enterprises.<\/p>\n

Curiously, data from a U.K. government survey paints a different picture: 62% of small businesses and 65% of medium-sized firms are insured, compared with 53% of large enterprises.\u00a0<\/p>\n

\u201cSmaller firms recognize that one successful attack could shut them down entirely; they need insurance to back them up,\u201d says Mitchell. \u201cLarger organizations often have internal teams and feel self-sufficient. But cybercriminals don\u2019t discriminate by company size; they follow the path of least resistance.\u201d<\/p>\n

What\u2019s driving the surge in demand?<\/p>\n

The surge in adoption is directly tied to AI-driven phishing, ransomware, and business email compromise, three of the most financially devastating cyber threats to businesses today. Heimdal reports that ransomware alone accounts for 60% of all large cyber insurance claims, with the manufacturing sector making the highest number of claims in 2025, at 33% of the yearly total.<\/p>\n

At the same time, regulatory pressure and data privacy mandates have pushed more firms to seek coverage. In heavily regulated sectors such as finance, healthcare, and manufacturing, insurance is becoming a distinct compliance requirement.<\/p>\n

\u201cAI scams have changed the landscape completely,\u201d Mitchell says. \u201cYou no longer need a genius hacker to pull off a multimillion-dollar breach. Anyone with access to AI tools can replicate authentic emails or voices in seconds. Cyber insurance isn\u2019t a substitute for strong defenses, but it\u2019s the buffer between an incident and insolvency.\u201d<\/p>\n

The cost of being uninsured<\/p>\n

While insurance claims fell by 50% in 2025, the cost of successful attacks continues to rise. Average global claim sizes now sit at $115,000, but vary widely by region:<\/p>\n

$108,000 in the U.S.<\/p>\n

$226,000 in Canada.<\/p>\n

$35,000 in the U.K.<\/p>\n

The average loss is $79,000 for small firms and $228,000 for large enterprises. For industries like health care and manufacturing, individual ransomware claims have reached $631,000.<\/p>\n

\u201cA single attack can trigger legal fees, ransom payments, data restoration, and weeks of downtime,\u201d Mitchell explains. \u201cCyber insurance gives businesses a fighting chance to recover, covering the damage while they rebuild operations.\u201d<\/p>\n

What cyber insurance actually covers<\/p>\n

Mitchell explains that modern policies typically include coverage for:<\/p>\n

Ransomware and extortion costs;<\/p>\n

Business interruption losses;<\/p>\n

Legal expenses and regulatory fines;<\/p>\n

Forensic investigations and public relations support; and<\/p>\n

Data restoration and notification costs.<\/p>\n

However, Mitchell warns that not all insurance is created equal. <\/p>\n

\u201cSome policies exclude social engineering, the very type of attack behind most major breaches. We still see businesses shocked to learn that a phishing attack isn\u2019t fully covered because it was labeled \u2018human error,\u2019\u201d Mitchell says. \u201cCompanies must read the fine print and match their policies to their actual risk profile. Otherwise, they\u2019re paying for protection they might not get.\u201d<\/p>\n

Cyber insurance\u2019s ROI: The numbers don\u2019t lie<\/p>\n

The financial argument for cyber insurance is strong. Insurer Howden estimates that covered firms see a 19% return on investment, with potential savings of \u20ac16 million over a decade for a midsized enterprise. Allianz adds that insured companies saw losses rise only 70% over four years, compared with 250% for uninsured firms.<\/p>\n

\u201cCompanies that invest in cyber insurance are often more security-aware,\u201d says Mitchell. \u201cThey tend to also invest in better defenses, employee training, and regular audits. Insurance and prevention go hand in hand.\u201d<\/p>\n

Cyber insurance was once an afterthought, but today, it\u2019s a strategic pillar of risk management. As cyber threats grow more sophisticated and regulations become more demanding, having coverage signals not only preparedness but also professional credibility, he says.<\/p>\n

\u201cWhether you\u2019re a startup or a multinational, you\u2019re operating in a digital battlefield where attackers are faster, smarter, and often automated. Insurance isn\u2019t a silver bullet, but it gives you breathing room when the worst happens,\u201d Mitchell adds. \u201cMy advice to businesses is simple: pair strong cybersecurity defenses with a well-structured insurance policy. Don\u2019t wait for an attack to expose the gaps. Proactivity is the only real protection left.\u201d<\/p>\n

Photo credit: amgum\/iStock<\/p>\n

\t\t\tThanks for reading CPA Practice Advisor!
\nSubscribe for free to get personalized daily content, newsletters, continuing education, podcasts, whitepapers and more\u2026<\/p>\n

\t\t\t\t\tSubscribe
\n\t\t\t\t\t\t\t\t\t\tAlready registered? Log In<\/p>\n

\t\t\t\tNeed more information? Read the FAQs<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Cybersecurity Expert: Why Your Business Needs This One Thing That 62% of Companies Already Have…<\/p>\n","protected":false},"author":1,"featured_media":201689,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.cpapracticeadvisor.com\/wp-content\/uploads\/2026\/04\/cyber-protection-iStock.jpg","fifu_image_alt":"","footnotes":""},"categories":[15],"tags":[26,30,24,35,25],"class_list":["post-201688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cybersecurity","tag-ai","tag-breach","tag-cybersecurity","tag-hacker","tag-phishing"],"_links":{"self":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/201688"}],"collection":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=201688"}],"version-history":[{"count":1,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/201688\/revisions"}],"predecessor-version":[{"id":201690,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/201688\/revisions\/201690"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/201689"}],"wp:attachment":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=201688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=201688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=201688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}