What Does Cyber Liability Cover?
Each insurer that offers Cyber Insurance does it a little differently, but these six key coverage areas seem to be consistent:
- Data Loss & System Damage: Your current property policy covers damage to the computer itself—but not the data stored on them. Doh!
- 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.
- 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.
- 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.
- 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.
- 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.