Everything You Need to Know About Cyber Liability Insurance Coverage

Read our Cyber Liability Whitepaper

The aggressive evolution of cyber threats — both in sophistication and speed — has resulted in a pressing need for organizations to prepare for the “when” rather than the “if”.

As an added layer of necessary protection, businesses are turning to cyber liability insurance to fortify their protection.

When you download Omega’s whitepaper, Readying Your Business for Effective Cyber Liability Insurance Coverage, you’ll discover who needs cyber liability insurance, what it covers and what affects its cost. We cover the following topics in the paper:

Why Organizations Turn to Cyber Liability Insurance Providers

Cybersecurity liability insurance was once a “nice-to-have” policy — something your organization didn’t necessarily need. Those days are gone, especially as standards for cybersecurity become more strict. Your company needs liability coverage if it handles sensitive or personal data of any kind.

Multiple types of data fall under the umbrella of sensitive data, including medical records, personally identifiable information (PII) and financial details. Most standard corporate insurance policies don’t stretch to cover cybersecurity incidents, meaning your organization will require a separate policy.

Our whitepaper reviews the two most common reasons organizations choose cyber liability insurance and what these policies cover, such as recovery expenses, legal fees and compliance penalties.

10 Things You Need to Know About Cyber Liability Insurance

To ensure you get the right coverage, there are facts you must know about cyber liability insurance. The whitepaper details the most critical details to know when searching and applying for coverage.

Cyber Liability Considerations

When applying for cyber liability insurance, some factors may take you by surprise. For example, if your organization hasn’t put cybersecurity protections into place within a certain period, a provider can refuse to renew your policy. If you don’t have multi-factor authentication set up, finding coverage can be tough, if not impossible.

Focus Areas for Cybersecurity Compliance

Getting insurance doesn’t absolve your organization of responsibility. Your policy may require you to take actions to reduce the risk of a cyberattack and to protect private and sensitive data. Our whitepaper reviews the 12 most common focus areas for cybersecurity compliance, including:

• Having a written security policy
• Training employees
• Controlling access
• Encrypting data
• Creating and maintaining audit trails
• Using multi-factor authentication

We also go into detail about the importance of each focus area and how organizations can implement them.

What Affects Insurance Premiums?

Cyber liability insurance is a necessary expense, but the cost of premiums is often high. However, there’s no one-size-fits-all price regarding premiums — several factors affect how much your company pays. Fortunately, many of these factors are within your control.

The paper reviews the factors that are most likely to affect the cost of your cyber liability insurance coverage, such as:

• Employee training: A major cause of cybersecurity incidents is human error. Training your employees and keeping them up to date on the latest risks and threats can result in lower premiums.
• Organization location: Policy requirements and standards vary from state to state. Your organization’s location can impact the price of your policy.
• History of loss: When it comes to cyberattacks, lightning can strike twice. If your organization has a history of loss or breaches, an insurance provider is likely to consider you at an increased risk of a repeat attack, which can equate to higher premiums.
• Your policies and practices: Insurers will look at your current policies, your backup procedures and your data protection practices when determining the cost of your cyber liability insurance policy.