Cyber Liability does not begin to describe the breadth of coverage actually available in a Cyber Liability Insurance policy. While coverage varies greatly between insurance companies, the best policies provide coverage for the direct, first party expenses essential to a company’s recovery from a network event or privacy breach.
First Party coverages include: Forensic Costs to determine the cause and extent of a breach or network event; Business Interruption Costs; Data Restoration Costs; Cyber Crime direct losses; Cyber Extortion threats; Public Relations Expense to manage reputational damage; Legal Expenses to determine notification requirements and letter content; Notification Costs; Call Center and/or Credit Monitoring costs.
It is important to review policy terms and conditions. Carriers typically cover direct business interruption and data restoration costs on an indemnification basis, while costs associated with a privacy breach are usually paid by the carrier on the insured’s behalf.
Many carriers limit the coverage for breach notifications and related expenses to a set dollar amount. Some carriers have moved to a notifications sublimit based on the number of affected records, allowing insured’s to be certain that adequate coverage limits are in place.
Register for our upcoming 2014 Cyber Risk Management Boot Camp to learn the latest coverage news: https://insuretrust.com/cyber-boot-camp