What Factors Determine the Cost of Cyber Liability Insurance?

• data: what type of data is being collected and how much is being collected?
• controls: what type of security measures and incident response plans do you have in place already?
• industry: a payment processor is more likely to be attacked than a cookie store with an online presence.
• customer base: the more customers, the higher the potential severity of a data breach. If the customers are large companies/institutions with deep pockets and a lot to lose, underwriters will recognize the increased risk of expensive litigation in the event of a data breach.
• revenue: this is the primary factor for determining rate change on renewal.
• and, as always, claim history: a history of litigation raises red flags

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11/25/2024