What are the key differences between standalone cyber insurance and endorsements?

Standalone cyber insurance policies differ from endorsements added to general liability insurance in several ways:

1. Coverage Scope: Standalone cyber insurance policies are specifically designed to cover risks related to cyber incidents such as data breaches, ransomware attacks, and other cyber threats. On the other hand, endorsements added to general liability insurance may provide some limited cyber coverage as an addition to the existing policy.

2. Tailored Coverage: Cyber insurance policies are often more tailored to the specific cyber risks faced by organizations, providing comprehensive coverage for expenses related to data breach response, regulatory fines, legal fees, and loss of income due to cyber events. Endorsements in general liability policies may offer more limited and generic cyber coverage.

3. Limits and Deductibles: Standalone cyber insurance policies typically have separate limits and deductibles specific to cyber incidents, allowing for adequate coverage without affecting other lines of insurance. Endorsements on general liability policies may share limits with existing coverage, potentially leaving gaps in protection.

4. Specialized Services: Cyber insurance policies often come with access to specialized services such as cyber risk assessments, incident response teams, and legal support in the event of a cyber incident. These services may not be included in general liability policies with cyber endorsements.

5. Cost: Standalone cyber insurance policies are priced based on the specific cyber risks faced by an organization and the coverage required, while adding endorsements to general liability insurance may result in increased premiums without providing the same level of comprehensive cyber coverage.