Cyber risk is not just something large Fortune 500 companies need to worry about. It can affect all types of organizations, both large and small. Whether from a highly advanced outside attack on your systems or the simple act of a disgruntled employee stealing a laptop, your business is at risk.

Cyber Insurance Overview

Cyber liability can protect your business from the risk to your tangible and intangible property. It can include customer names, social security numbers, credit card numbers, health information and even the threat of a virus. Cyber liability insurance includes several important coverages that address both first party and third party needs. Coverage limits from fifty thousand dollars to one million are offered.

Third-Party Coverage

Third-party coverage protects your customers’ information that you have on file. A third party claim is one that is brought against your insurance from another individual or business.

Types of third party coverages:

• Information Risk Liability and Communication Incident Liability - Protects you in the event that corporate or personal information of others in your care is breached. Examples of this include unauthorized use of a trade name, disclosure of private information or even the transmission of a virus or malware.
• Privacy Administrative Proceedings Defense Expenses - Defends you in a proceeding brought about by a governmental authority due to your violation of a privacy regulation.

First-Party Coverage

First-party cyber coverages are meant to cover claims you make against your own insurance. This includes loss of income during a covered business interruption and costs to notify clients of a data breach.

Types of first-party coverages:

• Data Loss Expenses - Allows you to immediately and efficiently respond to a breach of your data. Covered expenses/services include the cost to set up and administer affected individuals with credit monitoring, to notify those whose information was lost, to replace the data that was lost, and the cost of extortion payments if someone is holding your data in order to collect a reward for its return.
• Personal Identity Recovery Expenses - Covers the cost to restore control over your own identity caused by a data breach. This includes the cost to notify affected individuals, set up credit monitoring and fraud alerts.
• Business Income and Extra Expense - Covers your loss of income due to network interruption, key persons’ inability to access the network, and expenses incurred to minimize the network interruption.
• Computer and Funds Transfer Fraud - Computer fraud covers the unauthorized use of a computer for the theft of money or property. Funds Transfer Fraud covers the loss of money and securities in your own account.
• Telecommunications Theft Expense - Provides coverage for charges incurred in the event that someone has fraudulently gained access to your outgoing long-distance telephone service.