How do insurers evaluate a company’s incident response plan during the application process?

Insurance providers assess the quality of a company’s incident response plan during the application process for cyber insurance by looking at various factors such as:

1. Thoroughness of the Plan: They evaluate how comprehensive and detailed the incident response plan is, including specific procedures for identifying, containing, eradicating, and recovering from cyber incidents.

2. Training and Testing: They look at whether employees are trained on the plan and if regular testing exercises are conducted to ensure its effectiveness.

3. Response Team: They assess the composition and readiness of the company’s incident response team, including roles and responsibilities assigned to each member.

4. Communication Protocols: They examine the communication protocols within the plan to ensure that there is a clear process for reporting incidents both internally and to the insurance provider.

5. Engagement with Third-Party Experts: They may inquire about any arrangements the company has made with external incident response firms or legal counsel to assist in case of a cyber incident.

6. Updates and Reviews: They consider how often the plan is reviewed and updated to reflect changes in the company’s technology, operations, or the cyber threat landscape.

By evaluating these aspects of the incident response plan, insurance providers can gauge the company’s level of preparedness and resilience in the face of cyber threats, which ultimately influences their decision on coverage and premiums.