What is the Cyber Insurance control?
Cybersecurity insurance is utilized.
This control, or one that is similar, is required by most SOC 2 auditors.
Why is this control important?
While both cyber insurance and general liability insurance can provide valuable protection for an organization, they differ in terms of the types of risks they cover and the losses they are designed to protect against.
Cyber insurance is a specific type of insurance that covers the financial losses an organization may incur as a result of a cyber event, such as a data breach or ransomware attack.
General liability insurance is a broader type of insurance that covers a wide range of risks that an organization may face, such as property damage, personal injury, and defamation.
There are several key differences between cyber insurance and general liability insurance:
Scope of coverage: cyber insurance is specifically designed to cover losses resulting from cyber events, such as data breaches and cyber attacks. General liability insurance covers a much wider range of risks, including physical damage to property and personal injury.
Types of losses covered: cyber insurance may cover a variety of losses resulting from a cyber event, such as legal costs, notification, and credit monitoring expenses, and business interruption. General liability insurance may cover a variety of losses resulting from covered events, such as medical expenses, repair costs, and lost income.
Exclusions: both cyber insurance and general liability insurance may have exclusions that limit the types of losses that are covered. For example, cyber insurance may exclude certain types of cyber events, such as those resulting from insider threats or employee negligence. Similarly, general liability insurance may exclude certain types of losses, such as those resulting from intentional acts or criminal activity.
Who’s involved with this control?
Typical control owner: CEO or COO
Typical parties involved: Admin to the CEO or COO
How often should I perform this control?
Typical frequency: Continuously
How do I demonstrate this control?
Provide the insurance policy that demonstrates coverage for cyber events.