What Cyber Liability Insurance Usually Covers
- Liability. Covers the costs (e.g., legal fees, court judgements) incurred after a cyberattack, such as data theft, or the unintentional transmission of a computer virus to another party, causing them financial harm.
- Crisis Management. Covers the cost of notifying consumers about a data breach that resulted in the release of private information, along with providing them credit monitoring services, as well as the cost of retaining a public relations firm, or launching an advertising campaign to rebuild a company’s reputation.
- Directors & Officers (D&O)/Management Liability. Covers the cyber liability risks faced individually by a company’s key decision makers while acting on behalf of the company.
- Business Interruption. Covers loss of income due to an attack on a company’s network that limits its ability to conduct business.
- Cyber Extortion. Covers the “settlement” of an extortion threat against a company’s network, as well as the cost of hiring a security firm to track down the blackmailers.
- Loss/Corruption of Data. Covers damage to, or destruction of, valuable information assets as a result of viruses, malicious code and Trojan horses.
Did You Know?
The average cost of a data breach for a business is $300,000. Additionally, 3 out of 4 incidents result from human error.
IBM & SymantecWhat Cyber Liability Insurance Usually Does Not Cover
- Failure to Follow Protocols Some policies have open-ended exclusions that won’t cover data breaches that result form the inability to install timely security patches or failure to follow a company’s security policy.
- War & Terrorism. Another exclusion in some policies is for war or terrorism. This will also not cover attacks from foreign countries with political, religious or social motivation.
