The cyber risk landscape has become increasingly unpredictable, with threats evolving faster than many organizations can adapt. For businesses across all industries, the question is no longer if a cyber incident will occur, but when—and whether they’ll be prepared to respond effectively.

“Cyber is a very challenging product because the threat landscape continues to evolve,” said Erin Strub Halchak, Head of Cyber – U.S. Underwriting at Liberty Mutual. “The industry tends to be reactive in cyber because it’s hard to predict what the next breach or vulnerability will be.”

This reactive nature of cyber risk presents unique challenges for both insurers and their clients. As attacks increase in both frequency and severity, organizations need more than just an insurance policy; they need a comprehensive approach to risk management and incident response.

The Reality of Today’s Cyber Threat Environment

Erin Strub Halchak, Head of Cyber – U.S. Underwriting, Liberty Mutual

The evolving nature of cyber threats means that businesses must shift their mindset from prevention alone to comprehensive preparedness. While security measures remain critical, the reality is that breaches have become increasingly sophisticated and difficult to predict.

“We regularly speak with our insureds about the importance of being prepared and ensure they know what actions to take when an incident happens,” Halchak said. This includes understanding policy coverage triggers, knowing available supplements, and having clarity on how insurance carriers will respond during an incident.

The stakes are particularly high for medium-sized and smaller businesses that often lack the resources to assess and manage cyber risks properly. These organizations face the same sophisticated threats as larger enterprises, but without the benefit of dedicated security teams or extensive risk management infrastructure.

“If that worst-case scenario arrives, you’ll have the full support of our team so that you can respond effectively,” Halchak said. “We provide access to the right vendors to provide assistance to contain the situation and help you negotiate with threat actors if it escalates to that.”

Building a High-Performance Culture in Cyber Insurance

For Halchak, addressing these complex challenges requires more than technical expertise; it demands building the right team culture. Her approach to leadership focuses on creating an environment where underwriters can thrive while maintaining the highest standards of risk assessment.

“Our hiring structure—how we’re building the culture on our team—has been one of my biggest priorities in stepping into this role,” Halchak said. “If you can build a strong culture, your people will be motivated to do their best work.”

This philosophy extends to every aspect of team building at Liberty Mutual’s cyber division. When evaluating potential team members, the focus goes beyond technical qualifications to assess cultural fit and growth potential.

Halchak explained that they are focused on driving a culture built on underwriting integrity and responsiveness, empowering underwriters to make timely, well-informed decisions. “We want to enable our underwriters to make decisions without sacrificing underwriting integrity,” she said.

The team looks for well rounded candidates who are eager to dig into risk and fit into the team’s collaborative culture.

What motivates Halchak most is shaping their professional development. She finds the greatest reward in empowering underwriters to make decisions and analyze risk independently. “I encourage my underwriters every day, ‘Challenge me, push on me.’ That’s how we grow.”

New Solutions for an Evolving Market

Liberty Mutual’s commitment to addressing evolving cyber risks is reflected in the development of two new products: Liberty Cyber Resolution™ and Liberty Tech Resolution™. These solutions represent the company’s first major form update in six years, reflecting the measured, thoughtful approach the company took in coming out with a new form.

“It’s been a lot of blood, sweat, and tears, and we’re very excited,” Halchak said. “Our last form was from 2019, so it’s really nice to get a fresh new policy out into the market.”

Liberty Cyber Resolution offers flexible coverage designed to meet the needs of insureds across all industries. Liberty Tech Resolution provides the same flexibility with tech and cyber coverage on a combined form specifically tailored for technology companies.

The timing of these new products aligns with current market conditions and the evolution of cyber threats. “As the cyber market continues to evolve and expand, we’re also experiencing soft market conditions,” Halchak said. “In these conditions, we offer broader coverage.”

Beyond insurance coverage, Liberty Mutual is leveraging technology to provide comprehensive risk assessment and management services. The company has developed an internal cyber risk assessment tool that helps underwriters analyze multiple data points to evaluate security vulnerabilities.

“We use those insights to inform insureds about any vulnerabilities they might not have noticed and advise them on how to address them throughout their policy period.”

The company is also incorporating artificial intelligence into its underwriting processes, which “improves our workflow and allows our underwriters to move quickly,” Halchak said.

Looking ahead, Liberty Mutual envisions even more sophisticated risk assessment capabilities. “We’ve heard a lot of talk lately about telemetric data and actually plugging that into our insurance network to get a full security review,” Halchak noted. “I think over the next 18 months to two years that will be more commonly talked about.”

Partnership-Driven Cyber Risk Management

Liberty Mutual’s approach extends beyond providing policies to building lasting partnerships. “We want to be more than an insurance policy. We want to be your insurance partner,” Halchak emphasized. This includes pre- and post-onboarding consultations with risk engineers, post-claim walkthroughs to improve future responses, and ongoing education about industry-specific threats and trends.

“It’s not just ‘Here’s your policy from our underwriter,’ and we move on,” Halchak said. “We coordinate directly with our claims team and risk engineers so clients know exactly who to contact at Liberty if a claim occurs. As cyber threats continue to evolve, organizations will need partners who can provide not just coverage, but comprehensive support throughout the risk lifecycle.

“Liberty Mutual is already a market leader in insurance. With our global scale and financial strength, we will be that partner to deliver a holistic cyber risk solution that helps organizations move from crisis to controlled response,” Halchak said.

To learn more, please visit business.libertymutual.com.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Liberty Mutual Insurance. The editorial staff of Risk & Insurance had no role in its preparation.