Data breaches and cybercrime are all too common. And in recent years, ransomware attacks have caused many organizations to face hefty extortion payments, legal fees, and reputational damage – not to mention the major headache that comes with each. Cyber insurance has become a powerful tool in the world of cyberattacks to help protect organizations from the implications of a ransomware attack, but many don’t understand what a cyber insurance policy actually covers.

At the end of 2021, Capital One agreed to pay a settlement of $190 million to 98 million customers whose personal data was stolen in a 2019 data breach. Similar class-action lawsuits were filed in 2021 against T-Mobile, Shopify, and Ledger. When it comes to the cost of breaches, however, those are just the legal fees. Every year, businesses lose millions of dollars in revenue to cyberattacks and data breaches.

The Federal Risk and Authorization Management Program (FedRAMP) has been in place for just over a decade (2011). Its purpose is to provide a “cost-effective, risk-based approach for the adoption and use of cloud services” by the federal government. This is to equip and enable federal agencies to utilize cloud technologies in a way that minimizes risk exposure through security and protection of federal information and processes.