How do insurers evaluate a company’s third-party risk management practices?

Insurers assess a company’s third-party vendor risk management practices for cyber insurance eligibility by analyzing factors such as how the company evaluates and selects third-party vendors, the level of due diligence conducted on vendors, contractual arrangements for data protection, incident response plans involving vendors, and compliance with industry standards and regulations. Additionally, insurers may look at the company’s history of vendor-related incidents and their response to these situations when evaluating their risk management practices.