Understanding the fine print: Cybersecurity insurance vs. warranties

The rise in cybercrimes and attacks has reached an alarming rate, putting organizations at risk of losing sensitive information and digital assets. The need to remain protected against these threats has led to the adoption of two key tools: cybersecurity insurance and cybersecurity warranties. While both aim to strengthen defense mechanisms, their approach to ensuring protection differs.

Adlumin’s latest Cyber Threat Insights report highlights a 20% surge in security threat detections, further emphasizing the importance of these tools in safeguarding businesses and organizations. But what exactly do these terms entail, and how do they differ in ensuring protection?

Understanding cybersecurity insurance

Cybersecurity insurance, also known as cyber insurance, cyber liability insurance, or cyber risk insurance, provides financial protection and assistance to organizations in the event of a ransomware attack, data breach, or any other form of cyberattack. It is designed to address the frequency and complexity of cyber threats and the potential financial losses that can result from them. Organizations purchase a contract where the organization’s liability for financial damages is minimized, alleviating the overall consequences if an incident occurs.


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