How Businesses Prepare To Buy Cyber Liability Insurance Coverage

Preparing to negotiate cyber liability insurance and improving cyber security posture are two separate but related tasks. Here are some steps that companies can take to prepare for both:

1. Conduct a cyber security risk assessment
   The first step in improving cyber security posture is to identify potential vulnerabilities and threats. A risk assessment can help companies understand their exposure to cyber attacks and determine the level of coverage needed in a cyber liability insurance policy. The assessment should also identify areas where security improvements can be made.
   
   
2. Develop a comprehensive cyber security program
   A comprehensive cyber security program includes policies, procedures, and controls to protect sensitive data and prevent cyber attacks. This program should be based on industry best practices and tailored to the company's specific needs.
   
   
3. Hire a breach counsel
   Breach counsel is a law firm or attorney that specializes in cyber security and data breaches. They can provide legal advice and guidance on how to respond to a breach and comply with notification requirements. Having a breach counsel in place can help companies negotiate a better insurance policy by demonstrating their commitment to cyber security and risk management. The bottom line is that breach counsel focuses on the client, cyber insurers focus on pricing risk and companies need both.
   
   
4. Determine the appropriate level of cyber liability insurance coverage
   Once the company has assessed its cyber security risk and developed a comprehensive program, it can determine the appropriate level of coverage needed in a cyber liability insurance policy. This coverage should be based on the company's risk profile and the potential costs associated with a data breach, including legal fees, notification costs, and potential damages.
   
   
5. Review and update insurance policies regularly
   Cyber security threats are constantly evolving, and insurance policies need to be updated regularly to ensure adequate coverage. Companies should review their policies annually or after any significant changes to their operations or risk profile.

By taking these steps, companies can prepare to negotiate cyber liability insurance policies and improve their cyber security posture. Working with experienced professionals, such as breach counsel and cyber security consultants, can also help companies identify potential risks and vulnerabilities and develop effective risk management strategies.