What is the role of incident response planning in the cyber insurance application process?

A strong incident response plan can improve a company’s chances of obtaining better terms during the cyber insurance application process by demonstrating to insurers that the company is proactive and well-prepared to mitigate and respond to cyber incidents effectively. Insurers may view companies with robust incident response plans as lower risks, leading to potentially lower premiums and more favorable policy terms. Additionally, a well-developed incident response plan can help minimize the impact of cyber incidents, reducing potential losses and claims, which can be attractive to insurance providers.