Source: Galactic Advisors - URS Partner
Cybercrime isn’t just an inconvenience anymore—it’s a booming industry. And the profits are staggering.
Last year, two of the biggest ransomware payouts exceeded $70 million each. That’s not just a big payday—that’s larger than most lottery jackpots. Cybercriminals see these numbers climbing and, like gamblers flocking to a billion-dollar Powerball, they’re lining up for their share.
But there’s another hidden goldmine in cybercrime that few discuss: class action breach settlements.
Tech giants are paying massive penalties—Google alone shelled out over $300 million in settlements last year. In the past 90 days, the number of these settlements has doubled. The consequences of a breach aren’t just about downtime and lost data anymore. They now include:
✔ Legal battles that drain resources
✔ Regulatory fines that cripple businesses
✔ Customer settlements that turn your company into an ATM for lawsuits
Cyber Insurance Won’t Save You—Unless You Can Prove You Deserve It
Cyber insurance is essential, just like auto insurance. But having a policy doesn’t guarantee a payout when disaster strikes.
Think about it: If you crash your car but were texting, speeding, or driving without a license, your insurer won’t cover the damage. Cyber insurance works the same way.
If you can’t prove you followed security best practices, your insurer can—and will—deny your claim.
How to Prove You’re Worth Protecting
To ensure you’re covered when it matters most, you need to document your cybersecurity efforts before a breach happens.
Here’s what insurers will look for:
📌 Employee Training Records – Can you demonstrate that your team was trained in security best practices? Are policies linked to that training?
📌 Third-Party Audit Reports – If your insurer requires annual penetration testing, can you provide reports, review notes, and proof that vulnerabilities were fixed?
📌 Incident Response Documentation – Do you have a playbook for security incidents? Are incidents logged with clear response records?
📌 Policy Enforcement Logs – It’s not enough to say you use multi-factor authentication (MFA)—you need logs proving it was enabled, tested, and used consistently.
When you have a clear, documented record of proactive security measures, your insurer will fight with you. If you don’t, you’ll be fighting alone—and likely losing.
The Bottom Line: Prepare Now or Pay Later
A cyberattack isn’t a question of if—it’s a question of when. You don’t get to opt out. But you can decide whether your business will survive or become another cautionary tale buried under lawsuits and denied claims.
Start protecting yourself today.
✔ Document your security efforts
✔ Implement a cyber liability management program
✔ Don’t wait until it’s too late
Because when the breach happens, the only thing that matters is the proof you already have.
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