Cyber liability insurance is designed to mitigate both the first and third party costs that may be incurred from a cyber attack. First party costs your business may incur directly as a result of an incident:
Crisis management costs
Practical support in the event of a data breach (electronic or otherwise) including forensic investigations, legal advice, notifying customers or regulators, and offering support such as credit monitoring to affected customers.
A policy will protect you if a hacker tries to hold your business to ransom by covering the ransom you have paid, as well as the services of a consultancy firm to help manage the situation.
Cyber business interruption
Compensation for loss of income, including where caused by damage to your reputation, if a hacker targets your systems and prevents your business from earning revenue.
Reimbursement of the costs of repair, restoration or replacement if a hacker causes damage to your websites, programs or electronic data.
Third party costs you may be liable to pay to others:
Security and privacy liability
Coverage for defense costs and damages for third party claims arising out of a failure or violation of the security of a computer system or network that results in unauthorized access, unauthorized use, denial of service attack or receipt or transmission of a malicious code.
Coverage can also include for payment card industry data security standard fines, penalties and / or assessments.
Protection if you mistakenly infringe someone’s copyright, for example by using a picture online without permission, or inadvertently libel a third-party in an email or other electronic communication.
Regulatory liability and fines
Cover for costs to respond to governmental investigation arising out of a Privacy event. Coverage for fines and penalties to the extent allowed by law.