Mondaq

Understanding Cyber Insurance Coverage Amid Rising Data Breach Costs

First seen 8 Sep 2026, 23:43 UTC • •24.9

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ThreatCluster •September 9, 2026 at 22:44 UTC

•The average cost of a data breach has increased to over $4.8 million in 2024.
•North Carolina's HB 737 provides a safety net for cyber insurance policyholders.
•Understanding the differences between first-party and third-party coverage is crucial for businesses.

Cyber insurance is increasingly vital as data breaches expose thousands of customer records daily. IBM's 2024 report shows the average cost of a data breach has risen to over $4.8 million, a 10% increase from the previous year. The report highlights that nearly half of breaches involve personally identifiable information (PII), with significant losses stemming from business interruptions and response costs. North Carolina's HB 737, enacted in 2025, recognizes cybersecurity insurance as a covered policy type under the NC Insurance Guaranty Association Act, providing a safety net for policyholders. However, the coverage varies widely among insurers, leading to gaps in understanding what policies actually cover. Businesses are advised to thoroughly comprehend their cyber insurance policies to ensure adequate protection against potential incidents. The article provides insights into first-party and third-party coverage, emphasizing the importance of breach response costs.

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Timeline

2024-01-01

IBM's Cost of a Data Breach Report released

The report indicates the average cost of a data breach reached over $4.8 million, marking a 10% increase from the previous year.

2025-01-01

North Carolina enacts HB 737

The General Assembly added cybersecurity insurance as a covered policy type under the NC Insurance Guaranty Association Act.

2026-09-08

Articles published on cyber insurance

Both Wardandsmith and Mondaq publish articles detailing the importance and nuances of cyber insurance coverage.

More articles in this cluster (2)

Threat Graph

8 entities, 7 inferred relationships (STIX 2.1).

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Technique (8)

Data Breach
Malware
Phishing
Ransomware
Supply Chain Attack
T1195 - Supply Chain Compromise
T1486 - Data Encrypted for Impact
T1566 - Phishing

Relationships

Data Breach related to Malware
Data Breach related to Phishing
Data Breach related to Ransomware
Data Breach related to Supply Chain Attack
Data Breach related to T1195 - Supply Chain Compromise
Data Breach related to T1486 - Data Encrypted for Impact
Data Breach related to T1566 - Phishing

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