Cyber insurance provides coverage that protects a firm from:
- Any information disclosed that should have been kept private, by law.
- Within an online, digital, or social media setting, the blame when invasion of privacy or a violation of copyright/trademark has been alleged.
- Computer security failures that cause deletion or transformation of data, malicious code, or an interruption of service.
Holders of cyber liability insurance can obtain monies to help them with expenses for fraud and/or their defense against privacy violation claims, as well as to cover the cost of expertise that may be required.
Privacy Liability Insurance
- Covers when private (personally identifiable, protected health or confidential company data) information is disclosed without authorization
- Provides liability coverage
Privacy Regulatory Claims Insurance
- Covers a privacy breach of a federal, provincial, local, or foreign regulation or law in regards to privacy
- Provides coverage for a legal defense, penalty, or fine levied
Security Breach Response Insurance
- Covers confidential information pertaining to your customers or employees
- Provides coverage to help a firm limit damage to their brand, to cover legal expenses incurred to determine obligations, and to cover the cost of monitoring affected customers
Note: if notification will potentially cause damage to your brand, coverage can be broadened if there is no legal requirement to notify.
Security Liability Insurance
- Covers alleged or real security wrongful acts
- Provides liability for lack of authorized access to your computer systems by a third party; data manipulation; false or unwanted phishing communications that affect data; theft; denial of service; or transmission of code to a third party
Multimedia Liability Insurance
- Covers allegations during communications of media content in non-electronic or electronic instances
- Provides protection against slander, defamation, emotional stress, libel, failure to the right of privacy, copyright or infringement of intellectual property
Note: This coverage can be extended to include types and formats of media where the information is being stored.
Cyber Extortion Insurance
- Covers malicious code being introduced; a system interruption; corruption of data; manipulation or the destruction of personal or confidential company information
- Provides payments and other costs related to extortion that allow you to negate a potential threat from becoming a reality
While cyber liability insurance is not required by law, it is quickly becoming an expected coverage. Having coverage significantly minimizes risk and mitigates costs in the event of a security/data breach.