Cyber Insurance

Cyber Insurance

In today's increasingly digital and connected world, individuals and many businesses continually face some form of cyber risk in the course of their day-to-day activities, business operations and services. For businesses in particular, a breach of operating systems, loss of private information, intellectual property, or confidential business information and data due to a cyber attack can result in severe business interruptions, loss of income, damage to company reputation, and unexpected costs. According to the Small Business Administration (SBA), small businesses account for almost 50 percent of private-sector employment, and a recent survey indicated almost 90 percent of small businesses are concerned about their business vulnerability to cyber attack.

The reality is many buisnesses may not have in place the sophisticated or multi-level network security systems that large businesses and corporations are able to maintain. Incidents of cyber attack or threats will likely have more devastating and longer-lasting consequences for small businesses. As services, operations, and communications increasingly become automated and there is reliance on efficiency of digital tools, many businesses will continue to face the risk of hackers and breaches. That is why a cyber insurance coverage is paramount for mitigating cyber attack incidents.

Some of the coverage highlights include coverages for:

  • Data Compromise Response Expenses - Data Compromise coverage is triggered by the insured’s discovery that personal information in the insured’s care, custody or control or from third parties with whom the insured has a direct relationship and to whom the insured has entrusted the personal data has been lost, stolen or inadvertently published. 
  • Computer Attack - Coverage is triggered by the insured’s discovery that a computer attack has affected a computer system owned or leased by the insured and under the insured’s control. A computer attack may be in the form of a hacking event or other instance of an unauthorized person gaining access to the computer system, attack against the system by a virus or other malware, or denial of service attack against the insured’s system.
  • Cyber Extortion - Coverage includes cost of a negotiator or investigator retained by you, and any amount paid in response to a credible cyber extortion threat.
  • Data Compromise Liability - Data Compromise Liability Coverage can be a complement to the Response Expense Coverage,  providing coverage for defense costs (within the coverage limit) and associated settlement and judgment costs arising from an action brought by “affected individuals”.
  • Network Security Liability - This coverage is triggered by the insured’s receipt of notice of a network security liability suit which can be a civil action, or an alternate dispute resolution proceeding.



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