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A panel hosted by Business Insurance at the 2015 Cyber Risk Summit hosted in San Francisco, CA shed light on the success of cyber coverage, particularly in the small organization market. The current dialogue around cyber security has been centered on massive breaches costing large firms hundreds of millions of dollars; however, the panel discussed the need for more cyber coverage for the small and mid-sized market.

A study from the Ponemon Institute concluded the average cost of a cyber breach for this market hovers around $4.8 million, a stark contrast to the $250 million breach perpetrated on Target. Insurers have been increasingly prepared and willing to provide the $5-10 million coverage needed by small and mid-sized organizations.

Steve Bridges of JLT specialty Insurance Services Inc. believes skepticism around cyber coverage is beginning to fade as more claims reporting breaches are being paid out to clients.

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