When a cyber incident strikes, most business owners worry: “What do I do now?” In the webinar at the top of this page, Access Point CIO Anthony Rivera and Couch Braunsdorf Insurance Group CIO Eric Wistrand explore how cyber liability insurance can help fill the gap between technical readiness and financial recovery. Following are key takeaways from the recording— and the reasons why this topic deserves a closer look for small and mid-sized organizations.
As Rivera explained, cyber liability insurance functions like any other form of protection — except it covers your digital assets. It’s designed to help organizations respond to and recover from incidents like ransomware, data exposure, or lost devices.
Wistrand described coverage in two main categories:
While cyber insurance isn’t the right fit for every business, it’s increasingly relevant as more insurers tailor coverage for small and mid-sized organizations. The key, both speakers agreed, is understanding what’s covered, what controls are required, and how the policy fits into a broader cybersecurity strategy.
Modern insurers are becoming more selective, and coverage depends on whether an organization maintains baseline cyber hygiene — the same practices that reduce risk in the first place. These include:
These “table stakes” are now standard underwriting questions. Wistrand noted that missing even one—like MFA or timely patching—can complicate a claim. Rivera added that asset inventory is equally foundational: “You can’t protect what you don’t know you have.”
A 2024 Verizon study cited during the session found that 60% of small businesses close within six months of a breach—a statistic that underscores why risk management is more than just a technical concern.
Wistrand described three dimensions of the total cost of risk:
In the best-case scenario, these work together. A balanced program with strong cyber controls and reasonable coverage helps make potential losses more predictable. Rivera compared it to storm prep: “You don’t wait for the storm to hit before checking whether your generator’s fueled up.”
The speakers walked through a real incident at a mid-size retail company that was hit with ransomware after a threat actor exploited an Exchange vulnerability.
Within hours, the company activated its cyber policy, engaged forensic and legal teams, and began recovery. Expenses included:
Because the organization had both coverage and preventive controls, downtime was minimal, and operations resumed quickly.
The takeaway wasn’t that insurance solves everything — but that it can provide structured, expert-led support at a time when speed and precision matter most.
Rivera and Wistrand also warned about vendor risk — the often-overlooked exposure that comes from partners or contractors who have access to your systems.
One example involved an IT director who hired a freelance Exchange consultant overseas without verifying their credentials or liability coverage. The result: a possible entry point for a later breach.
The lesson: organizations should hold their vendors to the same security standards they apply internally. A partner’s weak controls can become your exposure.
Cyber liability insurance isn’t a cure-all, nor is it a mandatory investment for every business. But as cyber incidents grow more common — and as response costs climb — it’s worth understanding how a policy fits into your overall risk posture.
As Wistrand noted, “There are two types of businesses: those that know they’ve been breached, and those that haven’t discovered it yet.”
The encouraging news? Preparedness doesn’t require perfection. Implementing a handful of core controls and reviewing your insurance options alongside them can go a long way toward protecting both your data and your reputation.
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