Unveiling the Difference Between Good and Bad Cyber Liability Insurance

In the ever-evolving landscape of digital threats, Cyber Liability Insurance has emerged as a crucial safeguard for businesses. In this article, we will explore the key differentiators between good and bad Cyber Liability Insurance policies, empowering you to make informed decisions to protect your organization against cyber risks effectively.

Standalone Policy vs. Attached Coverage

The first crucial factor to consider is whether your Cyber Liability Insurance is a standalone policy or merely an endorsement to another coverage. While exceptions exist, standalone policies offer comprehensive protection tailored to your specific needs. In contrast, coverage that commonly attached to general liability or business owners policies often comes with low limits and may not fully address your cyber risk exposure.

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Coverage Limits and Customizability

A good Cyber Insurance policy should offer ample coverage limits, providing adequate protection against a wide range of cyber threats. Look for policies with higher limits and customizable options to suit your business’s unique requirements. Ensure the coverage addresses areas such as website media content liability, regulatory defense, penalties, cyber extortion, fraud, and more, with limits that align with your risk profile.

Holistic Coverage Considerations

It’s essential to evaluate the breadth of coverage offered by the policy. An ideal Cyber Insurance policy should encompass a wide range of potential risks. Ensure the coverage includes breach event costs, post-breach remediation costs, dependent system failure, financial fraud, and bricking coverage to safeguard against physical damage to your property.

Additional Defense Costs

An essential aspect to review is whether or not defense costs are included within the limits. Many base policies will include defense costs within the limits listed on your policy.  If you are worried about significant legal costs – such as if you hold many HIPAA records – your limits may be exhausted just by defense costs.  Consider requesting either higher limits of coverage, or looking for a policy that would provide additional defense costs.

Addressing Cyber Extortion & Fraud

Cyber extortion, such as ransomware attacks, can cripple businesses. Ensure your policy provides adequate coverage for cyber extortion, including professional negotiation services, cyber incident response, and coverage for the ransom itself. Opt for policies that go the extra mile to protect your organization against these rising threats.

While we’ve seen several years of exponential growth in ransomware attacks, beware of the continually emerging threat of fraud.  Whether it’s non-digital social engineering or AI driven deepfakes, fraud is a threat to every size of business.


Selecting the right Cyber Insurance Policy is crucial for protecting your business from the complex web of cyber risks. A well-structured standalone policy, offering high coverage limits and comprehensive protection, will position your organization to face cyber threats with confidence. At Stillwell Risk Partners, we are committed to helping our clients take control of their risks by providing expert guidance, tailored insurance solutions, and access to experts in the field of cybersecurity. Reach out to us today for a comprehensive review of your cyber insurance needs and secure the future of your business.

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