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Six Must-Haves for a Cybersecurity Insurance Policy


STLBJ Content Logo - online editionAs data breaches and cyberattacks become an increasing threat to every size and type of business, the subsequent scrutiny of their attack defenses is unavoidable. Cyber insurance is a specific coverage that is meant to provide financing in the event a business suffers such a cyber loss.

About 70 carriers now offer cyber insurance, according to a recent Insurance Journal article. Despite having options, organizations face a complex variety of policy forms and coverages when assessing cyber insurance. Buying cyber coverage is different than buying other insurance where relatively standard policies exist with few options. Cyber liability policies come in many forms with various coverage options. There are many sections to a cyber policy, with each selected section bringing additional premiums.

Aside from deciphering the differences among insurance policies, an organization must also consider its own changing needs. As technology changes, so do cyber risks, so month to month an organization’s exposure and needed security methods can vary drastically. Appropriate cyber insurance coverage should be evaluated often.

Selecting A Cyber Insurance Policy

What does your business need to properly protect it if a loss occurs? Below are six criteria to keep in mind when assessing a cyber insurance policy.

1. Do you have a state-of-the-art policy? There are many different coverages offered – some insurance companies offer more comprehensive coverage than others.

2. Are you paying too much? The price is going up for this coverage because of recent incidents. How can you “distance” yourself from comparisons with recent incidents?

3. Is your profit insured? Organizations that have been hacked generally report that they lose business as a result of the hacking. Consider your exposure and what insurance limits you should purchase.

4. Are your compliance costs covered? Laws require certain actions by the hacked companies. Be sure your policy provides coverage.

5. How much information do you store? Just to notify everyone affected by a security breach and to offer credit monitoring can cost over $1 per individual.

6. Do you have appropriate endorsements to your policy? The coverage offered by the insurance community varies, so you need to consider your needs (e.g., if you need coverage for a public relations firm to help you through the issues that arise from a cyberattack).

Click here to view a short video and learn more about how cyber insurance helps protect against cyberattack liabilities.

Bill Goddard, CPCUTo discuss a cyber insurance policy for your organization, contact Bill Goddard, Principal, Insurance Advisory Services, at 314.983.1253 or


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