Why is it difficult to pick the right insurance to be SOC2 compliant? 

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The main issue here is that the AICPA guidelines are vague in terms of what constitutes “the Use of Insurance to Mitigate Financial Impact Risks” as outlined in its guidelines on the Risk Mitigation portion of Trust Services Criteria for Security, Availability, Processing Integrity, Confidentiality, and Privacy. Insurance makes a brief appearance in section CC9.1. That doesn’t give us a ton to go on. But the good news is that there are ways to ensure that the insurance coverage you choose will fulfill this recommendation.

What is the exact insurance coverage you need to be SOC2 compliant?

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While it is hard to pinpoint the exact policies and terms that need to be in your insurance policy in order to meet the SOC 2 guidelines, we do know that the goal of this coverage is to “offset the financial impact of loss events that would otherwise impair [the business],” as per AICPA’s guidelines. Therefore, we know that if we can provide a level of coverage that would be financially meaningful to your business should you experience a loss, we ought to be able to substantiate that this coverage is sufficient.

How to actually get SOC2 compliant cyber insurance?

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Now, let’s talk about the ‘how’ of getting SOC2 compliant cyber insurance. You can call your insurance broker where you bought your business owner’s insurance policy and tell them you  would like to purchase cyber insurance. The only drawback to this method is that your insurance broker may not offer cyber liability insurance let alone SOC2 compliant insurance.‍

There is a better way. You can use Telivy! Telivy is a digital insurance platform where you can get SOC2 compliant cyber insurance coverage in a matter of minutes. We specialize in helping businesses looking to achieve SOC 2 compliance. We are backed by over 30 years of insurance industry experience and  have partnered with a number of top tier cyber insurance companies across the country to provide you the best options with near instant quotes. You’ll have the benefit of multiple insurance carriers competing for your business on our marketplace. Once you find a policy that you like, you can sign up for it with just a few clicks.