UPDATE
Cybersecurity Awareness Month is an opportunity for businesses to evaluate their cybersecurity practices and determine whether their insurance coverage adequately addresses their evolving exposures.
October is Cybersecurity Awareness Month, an opportunity for businesses to evaluate their cybersecurity practices and determine whether their insurance coverage adequately addresses their evolving exposures.
Cyber threats continue to present significant financial and operational challenges for organizations of all sizes. Ransomware attacks, fraudulent funds transfers, compromised business email accounts, and third-party service provider incidents can result in substantial losses, business interruptions, and potential liability.
While cybersecurity controls play an important role in preventing and mitigating these incidents, organizations should also understand how their cyber insurance policies would respond if an attack occurs.
Understanding Potential Cyber Insurance Coverage Gaps
Cyber insurance policies vary considerably in the protections they provide. Coverage limits, sublimits, exclusions, and policy conditions can affect the amount of insurance available and whether a particular loss is covered.
For example, an organization may have substantial overall cyber liability limits but face a significantly lower sublimit for ransomware-related losses. Similarly, funds transfer fraud and social engineering losses may be subject to specific coverage provisions, additional conditions, or exclusions.
Third-party incidents present another area requiring attention. A cyberattack affecting a cloud provider, technology vendor, or other service provider can disrupt an organization’s operations, but coverage for dependent business interruption may be limited or subject to specific requirements.
Organizations should also review cybersecurity-related policy conditions, including applicable requirements concerning multifactor authentication, data backups, endpoint protection, and other security controls.
As Michael Fleischer, Senior Vice President at SterlingRisk, explains, “An organization doesn’t want to learn what their cyber policy excludes after a claim. The time to do a coverage analysis is prior to renewal, when you have an opportunity to make changes to your policy.”
Review Cyber Coverage Before Renewal
A comprehensive review of cyber insurance should consider the organization’s current technology environment, operational dependencies, financial exposures, and existing risk management practices.
Changes in business operations, including the adoption of new technologies, reliance on outside vendors, and expansion of remote or hybrid work arrangements, may create exposures that were not fully contemplated when coverage was last placed.
Reviewing coverage before renewal provides an opportunity to identify potential gaps, evaluate available policy enhancements, and address underwriting requirements while changes may still be possible.
SterlingRisk works with organizations to evaluate their cyber insurance programs, assess potential exposures, and identify coverage considerations based on their operations and risk profiles.
Cybersecurity Resources for Businesses
To support Cybersecurity Awareness Month, SterlingRisk has made available two resources designed to help organizations evaluate cybersecurity practices and identify areas for improvement.
2026 Cybersecurity Awareness Checklist
A practical loss control resource to help organizations review cybersecurity measures, identify potential vulnerabilities, and strengthen internal safeguards.
Common Cybersecurity Risks for Remote & Hybrid Workers
Guidance addressing cybersecurity exposures associated with employees working remotely or across multiple locations.
Additional Resources:
Download Our 2026 Cybersecurity Awareness Checklist
Download Our Common Cybersecurity Risks for Remote & Hybrid Workers document
Questions or Need Guidance?
For assistance reviewing your organization’s cyber insurance coverage, contact your SterlingRisk representative or connect with our team to discuss your current program.
DISCLAIMER: This article is provided by SterlingRisk Insurance for general informational purposes only and should not be construed as legal or insurance advice. Always review your individual policy terms and consult your broker or legal counsel regarding your specific situation.
