The 21st century has brought with it the advent of countless technological innovations which continue to impress consumers while forcing businesses everywhere to scramble and modernize at a moment's notice. The latest digital innovation to beset the modern marketplace is cyber insurance, which supposedly helps protect those who work from home or manager large quantities of data. Whether cyber insurance is effective and worth the investment remains to be seen, however, and it's only going to get more confusing as new entrants to the marketplace vie for a profitable position at the top of the industry.

Is cyber insurance worth the investment? Here's what we know about this budding industry.

More people are working from home

One of the reasons that cyber insurance is taking off right now is that more people are working from home than ever before, largely thanks to a slew of digital technologies which enable workers to fulfil their commercial responsibilities from the comfort of their living room couches. Small business owners and major corporations alike are now interested in saving money by letting their workers tap away at their keyboards from home, but this new form of doing business isn't without its downsides.

With more people working from home, for instance, cyber security concerns are graver than ever before, with insurers like Nationwide claiming that security lapses are running rampant around the country thanks to this new employment pattern. These fears appear to be relatively well-founded; after all, not everybody who's qualified to work from home is qualified to be a data scientist or IT security specialist, yet they could be inadvertently divulging important company secrets to the outside world.

Hackers of the future will doubtlessly seek to target those working from home, as they'll naturally view employees sitting in the comfort of their living rooms as viable means to bypass otherwise robust security systems. It's often been said that humans are the weakest link in the information security chain, and this is only likely to become more and more true as time goes on. 

Cyber insurance is still in its infancy

Enter cyber insurance, which promises to make these fears a thing of the past. Whether it can actually achieve that lofty goal remains to be seen, however, as the cyber insurance industry is still in its infancy and may yet need more time to grow before it can be relied upon to keep us safe from digital threats. Sites like Insurance Hero still don't provide it. With the Department of Homeland Security becoming interested in cyber security, however, and with countless other businesses of all shapes and sizes also investing in this domain, it wouldn't be unfair to say that cyber security operations in a few years' time will be robust and reliable. 

Right now, cyber insurance is a shaky endeavor which should only be relied upon by those who are desperate for protection and likely to suffer at the hands of hackers. Nevertheless, the future will doubtlessly generate changes which make digital coverage more important than ever before. As the rest of the 21st century unfolds, we can be confident that cyber insurance will play a more important role in the market as time goes on and threats grow graver.