What is a common characteristic of cyber liability coverage?

The most accurate choice regarding a common characteristic of cyber liability coverage is that it is usually written on a claims-made basis. This means that the coverage applies to claims made during the policy period, as long as the incident that triggered the claim occurred after the policy was purchased. The claims-made basis is particularly crucial in cyber liability insurance because the detection of a data breach or cyber incident might occur sometime after the incident takes place.

The nature of cyber risks often involves delayed discovery and reporting, which makes the claims-made structure beneficial for both the insurer and the insured. It provides a clear time frame within which claims must be reported, thus managing the risk for insurers more effectively.

Other options do not accurately reflect the characteristics of cyber liability coverage. For example, it typically does not offer unlimited coverage without deductibles, as most policies have limits and may include deductibles to share the risk. Additionally, cyber liability coverage is not restricted to just financial institutions; it is relevant to any business or organization that collects, stores, or transmits sensitive data. Lastly, while some policies may require payment per incident, this is not a universal characteristic of cyber liability insurance.