Cyber Liability

Cyber Liability insurance helps you to mitigate the risks associated with cyber threats. This type of insurance typically provides coverage for first-party and third-party risks, including costs related to data breaches, cyber extortion, regulatory fines, and legal expenses. This coverage is a component of risk management in today's digital age. As organizations increasingly rely on digital systems and data, they are exposed to a range of cyber threats that can lead to financial losses, reputational damage, and legal liabilities.

Coverage of Cyber Liability Insurance

Network Security & Privacy Liability
One of the key aspects of cyber liability insurance is coverage for network security and privacy liability. This coverage helps organizations respond to and recover from data breaches and cyberattacks that result in the theft or exposure of sensitive information. For example, in a retail company case, hackers gained access to the company's payment processing system and stole customers' credit card information. The company faced lawsuits from affected customers for failing to protect their data adequately.

Media Liability
Cyber liability insurance also provides media liability coverage, including protection against claims of defamation, infringement of intellectual property rights, and other media-related liabilities arising from online content. For instance, a social media marketing firm was sued for using copyrighted images in their advertising campaigns without permission. The firm's cyber liability insurance covered legal defense costs, settlement, and damages resulting from the copyright infringement lawsuit.

Cyber Extortion
Another significant risk covered under cyber liability insurance is cyber extortion, where cybercriminals threaten to release sensitive data or disrupt systems unless a ransom is paid. In a case involving a healthcare organization, hackers encrypted patient records and demanded a ransom for the decryption key.

Data Asset Loss
Cyber liability insurance also addresses the loss of data assets due to accidental deletion, corruption, or unauthorized access. In a scenario where a financial services firm experienced a server failure that resulted in the loss of critical financial data, the company's cyber liability insurance covered the costs of data recovery, forensic investigations, and restoring the affected systems.

Business Interruption
Lastly, cyber liability insurance includes coverage for business interruption, where organizations suffer financial losses due to disruptions in their operations caused by cyber incidents. For example, a manufacturing company experienced a ransomware attack that shut down their production systems, leading to significant revenue losses.

Underwriting Information for Cyber Liability Insurance

Nature of Business: Description of the organization's activities, data stored, and potential cyber risks.

Cybersecurity Measures: Details of the organization's cybersecurity protocols, including firewalls, encryption, and employee training.

Data Protection Practices: Information on data storage, handling procedures, and compliance with privacy regulations.

Claim History: Details of past cyber incidents, claims, or breaches.

Revenue and Size: Financial information such as annual revenue and number of employees.

We can provide insurance brokers with specialized expertise and knowledge in cyber liability insurance, helping them understand policy options, coverages, and exclusions to better advise our clients.