What does Cyber Liability Insurance cover? These policies cover a wide range of first party exposures for business owners:
IT Forensic Costs
The costs to determine what information may have been breached or accessed improperly. We know your clients are likely more concerned about data loss, the loss of customers, reputational harm, or legal defense costs. However, tracking down the cause of the computer systems breach is also an important (and costly) endeavor.
The costs to notify individuals, businesses, regulators and to run a call center related to the notification.
Credit Protection Costs
These are the costs to provide credit monitoring services to the affected parties. This is often offered as a part of the notification.
Crisis Management Costs
This covers media liability costs, including the cost to hire a public relations firm. How your clients internally publicly respond to a breach is crucial. The first several hours plays a pivotal role in how they come out on the other side of the incident.
Crime and Social Engineering
This is coverage applies when a stolen username and password is used to direct funds out of your account. It’s also referred to as involuntary parting of funds coverage. Social Engineering is when a business is tricked into sending their funds out of their account. Often this “voluntary parting of funds” is perpetrated via a phishing campaign.
Hackers are getting more and more aggressive in their online tactics, specifically with Ransomware. They may destroy, damage, or otherwise incapacitate your network or data if you don’t meet their ransom demands. Coverage is available that includes ransom payments during extortion.
Cyber Business Interruption
Coverage is available for companies that rely heavily on the internet or their network for their revenue. General Liability policies typically do not cover this. If you or your client has this exposure, you need to specifically address it with your cyber policy.
This may also include dependent business interruption. This is when a third party that you rely on goes down, like a mission critical software hosted service. It may also extend to System Failure. This is when a power outage causes your digital computer systems to go offline.
Digital Asset Damage
This covers the cost to rebuild your client’s:
- Electronically-held data
IT is a large investment for most companies, even minimal network damage at the wrong time could cripple a business.