How do insurers evaluate a company’s incident detection capabilities?

Insurers assess a company’s ability to detect and respond to incidents when evaluating applications for cyber insurance through a process called cyber risk assessment. This assessment typically involves evaluating the company’s current cybersecurity measures, incident response plan, employee training, data protection practices, and overall cybersecurity posture. Insurers may also consider factors such as past security incidents, compliance with industry standards and regulations, and any third-party security assessments. A strong cyber risk assessment can help insurers determine the level of risk a company poses and tailor insurance coverage accordingly.