A cyber liability policy is designed to help businesses manage and mitigate the risks associated with conducting operations in the digital world. It provides coverage for various cyber-related incidents, including data breaches, cyberattacks, and other cyber threats.
-
First-Party Coverage: This includes costs incurred directly by the business as a result of a cyber incident, such as:
-
Data Breach Response: Costs related to notifying affected parties, providing credit monitoring services, and public relations efforts.
-
Data Restoration: Expenses to restore or recover lost or damaged data.
-
Business Interruption: Loss of income and additional expenses incurred due to a cyber event that disrupts normal business operations.
-
Cyber Extortion: Ransom payments and costs to negotiate with cybercriminals.
-
-
Third-Party Coverage: This covers claims made by external parties affected by the cyber incident, including:
-
Legal Defense and Settlements: Costs to defend against lawsuits and pay any resulting settlements or judgments.
-
Regulatory Fines and Penalties: Coverage for fines and penalties imposed by regulatory bodies for failing to protect sensitive data.
-
Network Security Liability: Claims arising from the failure to prevent unauthorized access or the spread of malware to third parties.
-
Media Liability: Coverage for issues related to online content, such as copyright infringement, defamation, and privacy violations.
-
-
Tailored Coverage: Policies can be customized to fit the specific needs and risks of different businesses, depending on their size, industry, and exposure to cyber threats.

