Cyber Liability Insurance

Cyber liability insurance is designed to provide first-party and third-party liability protection to businesses in connection with the theft or destruction of customer or employee data and for other related coverages such as hacking and cyber attacks. This product is also known as cyber risk insurance and cyber security insurance.

Any business that keeps sensitive customer or employee information such as credit card numbers, social security numbers, medical records or that has valuable other digital assets such as computer programs is at risk of a data breach which could end up costing millions of dollars to address.

What coverage is provided by cyber liability insurance?

Examples of first-party and third-party coverages provided by cyber liability insurance include the following:*

• Direct loss of digital assets such as data and programs
• Costs and expenses related to your liability for the loss of digital assets
• Loss of income due to interruption of computer system
• Cyber extortion payments
• Costs incurred to address the data breach, such as customer notification, credit protection, and public relations expenses.
• Costs incurred to protect digital assets and mitigate further data breaches.

* Please note that the coverage provided by cyber liability insurance varies by insurance company. Applicants for coverage should note that the above list is provided for informational purposes only and that each insurance policy should be carefully reviewed for coverage details and exclusions.

What are some examples of exclusions in cyber liability insurance policies?

Cyber insurance policies contain various exclusions. Examples of policy exclusions are as follows:

• Claims based upon or arising out of any false, factually incorrect or inaccurate materials, provided that the insured knew the material was false, factually incorrect or inaccurate at the time such material was first made known, displayed, or disseminated.
• Claims based upon or arising out of any insured committing any intentionally dishonest or fraudulent act or omission, committing any willful violation of any statute, rule, law; or gaining any profit, remuneration or advantage to which such insured was not legally entitled.
• Claims based upon or arising out of the actual or alleged inaccurate, inadequate or incomplete description of the price of goods, products or services, cost guarantees, cost representations, or contract price estimates, the authenticity of any goods, products or services, or the failure of any goods or services to conform with any represented quality or performance.
• Claims based upon or arising out of the actual or alleged obligation to make licensing fee or royalty payments, including the amount or timeliness of such payments.
• Claims based upon or arising out of any liability assumed by an insured under any contract or agreement.
• Claims based upon or arising out of any unsolicited electronic dissemination of faxes or emails.

Cyber liability insurance policies also contain other exclusions and limitations. Please refer to the insurance policy for coverage details.

Give us a call to discuss your cyber liability insurance needs.

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