What Does Cyber Liability Cover?

 In Commercial Insurance

What Does Cyber Liability Cover?

Well, each insurer that offers Cyber Insurance does it a little differently, but six key coverage areas seem to be consistent:

  1. Data Loss & System Damage– Your current property policy covers damage to the computer itself – but not the data stored on them.  Doh!
  2. Business Interruption – Loss of Revenue from downtime after a hack, denial of service, virus…that causes a temporary or long-term shutdown in your operations.
  3. Notification Expenses – Almost every State has notification requirements – your company must disclose any breach to parties whose private information was, or is reasonably believed to have been, acquired by a person without valid authorization.  You may also have to provide ongoing credit monitoring.  This could generate significant expenses to your organization.
  4. PR/Crisis Management – You’ve experienced a security breach, been out of business for a week, notified thousands of clients, vendors, etc of the breach…..better do some spinning Stat!  Hire a PR firm and do some marketing and public relations to minimize the damage to your brand.
  5. Content Liability – Anything associated with the content of your website, blog or other web presence from copyright and other IP claims to slander to invasion of privacy.
  6. Regulatory Investigation Expense – With the new notification laws having been enacted and privacy legislation constantly changing, there is always the chance that you could get a knock on the door from a friendly civil servant.  Most policies exclude governmental or regulatory investigation costs.  Bummer.  Make sure your cyber policy includes it.
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