The target market for cyber liability insurance is expanding beyond the largest financial, healthcare and retail companies to local contractors that work with those big names and may represent an outsized level of risk.
Indemnification for cyber breaches is becoming part of the requirement for doing business with larger companies, said Ari Vared, vice president at broker CyberPolicy.com. More of those larger companies are requiring their third-party contractors to buy policies as part of their own cyber liability protection, Vared said in an interview.
"Anytime they have a third party that is connecting into their system, there's this massive element of risk that they have no ability to control through their own cybersecurity measures," he said.
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