How do cyber insurance policies handle software vulnerabilities?

Software vulnerabilities can be covered by insurance through mechanisms like cyber insurance policies. These policies typically provide coverage for issues related to data breaches, cyber attacks, and other security incidents resulting from software vulnerabilities. Insurance providers assess risk mitigation efforts by businesses by evaluating various factors such as the cybersecurity measures in place, past security incidents, compliance with industry standards, the level of employee training on security practices, and the overall security posture of the company. Insurers may also consider the organization’s response plan in the event of a security breach and the extent to which they have implemented measures to reduce the likelihood of vulnerabilities being exploited.