Cyber Liability

Cyber Liability Insurance

The Basics

Virtually every business owner has a legal obligation to protect the information that is collected, stored, and used in the course of their transactions with customers or clients.

This often includes "personally identifiable information" (PII), "personal financial information" (PFI), or even "personal health information" (PHI). In addition to threats to data and legal obligations, businesses of all sizes face other serious threats to operations due to cyber events that may not necessarily be "data related":

- Business Interruption

- Infrastructure attacks

- Extortion/ Ransomware

- Social Engineering Fraud

Cyber insurance is less complicated than you might think and insurance companies are making it increasingly more accessible for the average business owner.  Cyber policies are comprised of two major coverage areas; Liability (Third Party)  and First Party Expense.

- Liability or Third Party Liability will focus on coverage for Virus Transmission, Network Security Breaches, Privacy Offense, Intellectual Property/ Media Offense

- First Party Expense may include coverage similar to what is found on property or crime policies, but commonly include Notification Expenses, Crisis Management, Cyber Extortion, Business Interruption, and Regulatory Defense & Fines

Insuring Agreements

What your Cyber Policy is designed to cover...

  •  Data Breach Fund - Covers expenses to retain a computer forensics firm to determine the scope of a breach, to comply with privacy regulations, to notify and provide credit monitoring services to affected individuals, and to obtain legal, public relations or crisis management services to restore the company’s reputation
  • Network Extortion ThreatCovers extortion monies and associated expenses arising out of a criminal threat to release sensitive information or bring down a network
  • Digital Asset Loss - Covers costs incurred to replace, restore or recollect data which has been corrupted or destroyed as a result of a network security failure
  • Business Interruption - Covers loss of income and extra expense arising out of the interruption of network service due to an attack on the insured’s network, including the acts of criminal hackers, malicious insiders and distributed denial-of-service (DDoS) attacks
  • Privacy Liability - Covers loss arising out of the organization’s failure to protect sensitive personal or corporate information in any format - also coverage for regulatory proceedings brought by a government agency alleging the violation of any state, federal, or foreign identity theft or privacy protection legislation
  • Network Security Liability - Covers liability of the organization arising out of the failure of network security, including unauthorized access or unauthorized use of corporate systems, a denial of service attack, or transmission of malicious code
  • Internet Media Liability - Covers infringement of copyright or trademark, invasion of privacy, libel, slander, plagiarism or negligence arising out of the content on the organization’s internet website




The Quoting Process

  1.  Completion of Application:

 - Revenues, Number of Employees, Number of PII, PFI, PHI records

 - Privacy Information Governance

 - Current Network & Technology Providers

 - Cyber Security Measures & Risk Assessments

 - Internet Media Information

2. Marketing Effort:

- Target insurance companies for specific risk

- Conference call with with management (CEO/CIO/CISO) and underwriting team

3. Policy Form Comparison:

- Review coverage forms, exclusions and premiums

- Negotiations final terms and conditions

4. Coverage Placement:

- Review cyber quote proposals with you and recommend coverage based on strength of policy form, claims handling and pricing


Contact us today for questions or to apply

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