There is no single Cyber Insurance limit suitable for every business.

The appropriate limit depends on the business, the information it holds, its reliance on technology and the potential financial impact of a cyber incident.

What should be considered? #

Factors can include:

• Incident-response costs
• Forensic investigation
• Data and system restoration
• Business interruption
• Length of a potential outage
• Number and type of personal or confidential records held
• Privacy and notification costs
• Potential claims from clients or other third parties
• Ransomware and cyber-extortion exposure
• Social engineering and funds-transfer fraud
• Reliance on cloud providers or other critical suppliers
• Contractual requirements

Is the overall policy limit the only consideration? #

No.

A Cyber Insurance policy can contain separate:

• Sub-limits
• Excesses
• Waiting periods
• Conditions

for particular sections.

Examples can include:

• Cybercrime
• Social engineering
• Dependent business interruption
• System improvements
• Cyber extortion

A high overall policy limit does not necessarily mean the same amount is available for every type of cyber loss.

The appropriate limit should therefore be considered together with the policy structure and the potential financial consequences of an incident.

Contact our team if you would like help reviewing Cyber Insurance limit options.