The cyber insurance reckoning: Why AI-powered attacks are breaking coverage (and what comes next)

This article is part of VentureBeat’s special issue, “The cyber resilience playbook: Navigating the new era of threats.” Read more from this special issue here. Today’s cyber attacks can be paralyzing — and extremely costly — for modern enterprises. Armed with AI, hackers are exploiting vulnerabilities faster than ever. However, standard business insurance products such as general or professional liability policies (errors and omissions, or E&O) typically don’t cover losses or damages as the result of breaches or other cyber-related incidents. This makes cybersecurity insurance increasingly critical in 2025 and beyond, particularly as AI transforms (and simplifies) hackers’ methodologies. Cybersecurity-specific insurance policies cover a range of remediation cost and recovery efforts to help enterprises limit damage, recover faster and improve their overall cyber hygiene. But as with any other type of coverage, cyber insurance can be complicated to navigate and full of legalese and ... Read full article.