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Cyber Insurance Ransomware Cost Estimator.

Actuarial simulation to determine if paying an annual Cybersecurity Insurance Premium is mathematically viable compared to the statistical likelihood of an unrecoverable Ransomware attack.

## The Math Behind Cybersecurity Insurance

Many executives refuse to pay $85,000 a year for cyber insurance because they haven't been breached yet. Actuaries price cyber insurance based on Expected Value (EV). If a ransomware attack would cost you $1.2 Million in lost revenue, legal fees, and data recovery, and you have a 4% chance of being hit this year, your statistical expected yearly loss is $48,000.

### FAQ

**Q: Should I just pay the baseline premium?**
A: If your premium is $85,000 but your Expected Loss is only $48,000, the insurance company is taking advantage of your fear. However, if your Expected Loss is $150,000, the insurance is massively underpriced in your favor and acting as a critical company safety net.