What is one reason for individuals and organizations to obtain cyber coverage?

Cyber coverage is essential for individuals and organizations primarily because the pervasive use of the internet has increased vulnerability to cyber threats. With a majority of businesses, government agencies, and individuals engaging online for transactions, communications, and data storage, the risk of cyber incidents, such as data breaches, ransomware attacks, and identity theft, has heightened significantly.

As more devices connect to networks and expand the scope of what can be attacked, the potential impact of these incidents has grown. Consequently, organizations must protect sensitive information and ensure continuity of operations in case of a cyber event. Cyber coverage helps mitigate these risks by providing financial protection against losses that arise from cyber incidents, thereby reinforcing the importance of such insurance in today's digital age.

The other options do not sufficiently address the core risks associated with cyber threats. While centralized systems may enhance risk due to a single point of potential failure, it’s the broader context of universal internet usage that highlights the need for proactive protection. The notion that cyber coverage is mandatory is misleading, as it is not a legal requirement for all businesses, but rather a prudent choice based on risk assessment. Lastly, while cost may be a factor in insurance decisions, the focus on why cyber coverage is sought should primarily relate to the risks tied to internet usage