No cyber security plan can eliminate all liability risks. Fortunately, there are now insurance products that specifically cover cyber risks.

Cyber liability policies cover both third parties (your clients and vendors, for example) and first parties (your company). Please note that specific policy provisions will differ with each insurance company but they typically include:

1. Network and Data Security:

This policy may cover damages to third parties due to compromised identity or financial information, privacy leaks, the transmission of computer viruses, blocked access or “denial of service” for authorized users, and failure to notify third parties of a security breach (where required by law). Many policies also cover paper documents as part of data security.

2. Electronic Media Liability:

This policy may cover damages from personal injury, domain infringement, copyright violation, and similar claims due to information published on a company website or via email or social media.

3. Security Breach Remediation and Notification Expense:

May cover costs associated with forensic and legal fees incurred to determine whose information was affected, the cost of notifying those parties, establishing a call center for third-party inquiries, and credit monitoring.

4. Computer Program & Electronic Data Restoration Expenses Coverage:

This policy may cover expenses incurred to restore your data and equipment lost or damaged due to a computer virus, rogue employee theft, or hackers.

5. Computer & Fund Transfer Fraud Coverage:

This policy may cover your direct loss of funds, securities, or other property due to someone gaining unauthorized access to your computer system.

6. Extortion Expense Coverage: 

This policy may cover costs incurred due to a credible threat from a third party to destroy your data or computer system, disclose third-party information, and other related liabilities

7. Regulatory Defense Expenses Coverage: 

This coverage applies to any fines imposed as a result of your company violating government rules regarding identity protection and security of third-party information.

8. Public Relations Expenses Coverage: 

Such coverage offsets costs you may incur for PR services needed to mitigate negative publicity due to cyber liability.

9. Business Interruption & Extra Expense Coverage: 

This policy may cover income lost and expenses incurred due to a disruption of your computer operations.

Again, please note that each cyber liability policy will differ in terms of coverages and exclusions. Our insurance experts are here to help you explore your options and design a complete commercial, professional and cyber insurance package that meets your specific needs. Contact us to learn more.