Key Statistics
Cyber risk is escalating fast, and the numbers prove it. In 2024, the average cost of a ransomware attack hit $4.91 million, while data breach costs climbed to $169 per record. Nearly 60% of small businesses shut down within six months of an attack, and email compromise now account for over half of all cyber insurance claims. As attacks grow more targeted and recovery costs rise, comprehensive cyber coverage has become essential - not just for breach response, but for business survival.
200% +
Ransomware
Ransomware activity increasing in Q4 year-over-year.
56%
Funds Transfer Fraud
Funds transfer fraud (FTF) constituted 56% of all cyber claims.
$169
Cost Per Record
Multiply $169 by the number of records to estimate breach costs.
30%
Increase in Attacks
Y-o-Y the problems are getting worse both in frequency and severity.
Cyber Liability Insurance protects your business from financial loss due to data breaches, cyberattacks, and security failures. It covers breach response costs, regulatory investigations, legal liability, business interruption, and ransom demands when your systems are compromised, or when your clients or partners suffer because of it.
URM Cyber Practice
Before cyber was a product line, we were shaping what it would become.
URM was founded by professionals who didn’t just sell cyber insurance, we helped define it. As attorneys, underwriters, and brokers, we were in the room when the first cyber policies were negotiated, exclusions were tested, and breaches forced the market to evolve.
That legacy shows up in everything we do. We know how the language works - because we’ve written it. We know what carriers will pay, because we’ve defended claims and litigated outcomes. And we know what fast-growing companies need, because we’ve built the risk strategy around them.
First Party
First-party cyber coverage protects your company directly - helping you recover from the immediate financial and operational impact of a cyber event.
Key Coverages Include:
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Breach Response Costs: Forensics, legal counsel, notification expenses, and credit monitoring.
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Business Interruption: Lost income due to downtime caused by a cyberattack or system failure.
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Data Restoration: Costs to recover or rebuild corrupted or destroyed data.
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Crisis Management: PR and reputational repair after a breach.
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Cyber Extortion (Ransomware): Negotiation costs and payment of ransom demands, subject to legal limitations.
Third Party
Third-party coverage responds to claims made against your company by clients, customers, partners, or regulators due to a cyber event that affected them.
Key Coverages Include:
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Network Security Liability: Claims arising from failure to prevent unauthorized access, malware spread, or system compromise.
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Privacy Liability: Legal action or regulatory penalties related to mishandling personal data (PII, PHI, payment info).
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Regulatory Defense & Fines: Costs to respond to investigations and enforcement actions (e.g., FTC, GDPR, CCPA).
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Contractual Liability: Breach of service level agreements or vendor responsibilities tied to a security failure.
Ransomware
Ransomware is now the #1 driver of cyber claims, and requires specialized coverage.
Cyber insurance can cover:
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Ransom demands (within OFAC limits)
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Legal and negotiation costs
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System restoration and business interruption
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Notification and regulatory response
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Reputation management after extortion
Note: Not all policies handle ransomware the same. Some exclude payments. Others limit incident response vendors. At URM, we ensure the language fits your actual threat profile.
Social Engineering & Funds Transfer Fraud
These are among the most common and costly real-world cyber claims, and they’re often excluded or narrowly covered.
What It Covers:
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Losses from phishing or business email compromise (BEC)
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Fraudulent wire instructions that lead to diverted funds
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Impersonation of executives, vendors, or clients in payment-related scams
Why It Matters: Many companies think this is covered under crime or cyber, but many base policies exclude voluntary transfers, even when tricked. URM ensures carvebacks or endorsements are in place for full social engineering coverage.
Reputational Harm
This covers loss of future revenue due to reputational fallout after a breach or cyber event - available only from select carriers.
What It Covers:
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Loss of business resulting from negative media coverage or breach notification
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Demonstrable revenue drop tied to brand damage
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Crisis communications consulting to minimize long-term impact
Why It Matters: This is rarely included in base cyber policies. It must be negotiated or endorsed separately and is typically available only to companies that can demonstrate revenue impact tied to brand perception.
What is Cyber
Cyber Liability Insurance protects your company from financial loss caused by data breaches, cyberattacks, and other digital threats.
It covers response costs, legal fees, regulatory fines, and business interruption resulting from security failures, system outages, or unauthorized access to sensitive information.