Cyber liability insurance has become a major product over the last several years. As claims have increased in frequency and size the cyber insurance market place has changed drastically. It is a maturing market place as these insurance products now becoming widely purchased.
A Cyber Liability Policy Comes with two major parts. First Party Coverage and Third Party Coverage.
First Party Coverage pays the insured for direct losses as were Third Party Coverage pays a third party who suffered a loss due to a security breach on the insured's system.
First Party Coverage typically incudes:
-Business Interruption: Income loss due to a network outage.
-Data Retrieval and System Restoration: Expenses incurred due to retrieval of lost data.
-Social Engineering & Cyber Crime Coverage: Losses due to phishing attacks, financial fraud, digital impersonation and the like.
-Cyber Extortion Coverage: Your expenses as a result of a cyber extortion event.
Third Party Coverage typically includes:
-Network Security Claim: A claim filed against YOU for a breach of your network. Common causes are denial of services attacks, malicious code or a stolen laptop.
-Media Liability Claims: Claims field against you for the release of copyright material, libel slander and defamation.
-PCI DSS Assessment Expenses: Costs, fines and assessments you are legally responsible for as a result of non-compliance with Payment Processing industry standards.
-Breach Management Expenses: Breach response costs for a security or privacy breach which you are obligated to pay a third party claimant.
*This is typical coverage, however most policies are tailored to the policyholder and not all may be included, however many time they are along with additional enhancements.