As technology continues to evolve, cyber threats have become more frequent, sophisticated and challenging to combat for all organizations. Housing not just financial information, but also personal identifying information (PII) of every member/customer, financial institutions are particularly vulnerable to falling victim to cyberattacks. According to IBM’s 2024 Cost of Data Breach Report, the average cost of a data breach is now reaching $4.88 million, a 10% increase over the previous year. If you’re institution hasn’t already obtained cyber liability insurance, it may be time to consider getting it.  

What is Cyber Liability Insurance? 

Designed to help organizations protect themselves from cyber attacks and data breaches, cyber liability insurance provides coverage for costs associated with responding to and mitigating the impact of a cyber event. While regulatory bodies like the NCUA and FDIC do not yet have set standards and rules for cyber insurance, they may become more involved as data security and privacy laws become stricter. 

Types of Coverage 

When evaluating insurance options, there are two main choices of either standalone or packaged policies. Standalone insurance focuses solely on cyber risks and has wider coverage, while packaged insurance is more limited, as it combines cyber coverage with other types of insurance. Additionally, there are a variety of cyber liability insurance policies available, however not all offer the same coverage and specific coverage options available can vary depending on the insurance carrier and policy. Below are the main types of cyber insurance coverage: 

• Breach response and remediation 
• Ransomware, cyber extortion and payment provision 
• Cyber business interruption 
• Dependent business interruption 
• System failure 
• Dependent system failure 
• Cyber crime 
• Digital asset damage 
• Privacy liability 
• Invoice manipulation 
• Social engineering 
• Client funds 
• Telephone hacking 
• Errors and omissions 
• Breach response 
• Reputational harm 

Your institution should take the time to carefully review your policy to understand the coverage you have and consider purchasing additional coverage, if necessary. 

How We Can Help 

Whether your institution is looking to purchase cyber liability insurance or have your current policy evaluated, our pros at Doeren Mayhew Insurance Group stand ready to help. They will discuss your unique needs to ensure your institution stays proactively protected.