Stand-alone policy

A stand-alone policy is a self-contained contract dedicated to one risk, designed and priced separately from traditional property or liability policies. In cyber, it has become the standard answer to silent cyber: the digital cover sits in its own contract, with scope, limits and exclusions spelled out. The insurer prices a clearly identified risk and tracks its accumulation more easily; the insured knows exactly what is covered. The alternative, cyber cover added by endorsement to an existing policy, is often narrower and leaves ambiguities about how the contracts fit together. Stand-alone policies still have their problems, chiefly overlaps or gaps with the insured's other policies, for example when a single loss falls under both cyber business interruption and a conventional liability cover. The contracts then have to be coordinated at the level of the insurance program.