How Cyber Insurance Helped With Breach Recovery -- Or Not
TechTarget, Monday, May 4th, 2026
Cyber insurance helps organizations recover from cyberattacks, but coverage gaps and unmet security requirements can leave companies fully exposed.
Cyber insurance has become critical to enterprise risk management, covering financial losses from cyberattacks, but real-world breaches demonstrate its limitations.
The article examines high-profile incidents including CNA Financial's $40 million ransomware payment, Caesars Entertainment's $15 million ransom, and MGM Resorts' $100 million loss despite $200 million coverage.
Notably, the city of Hamilton's insurance claim was denied when it failed to implement multi-factor authentication as required by policy. These cases illustrate that while cyber insurance can offset some losses, organizations must understand coverage details, maintain proper security controls, and recognize that insurance alone cannot eliminate the financial and operational impact of breaches.