Cyber liability insurance is often used to describe a range of cover options. Much like the word ‘cyber’ is used to describe various online activities, cyber liability cover protects you from a range of information and online security related breaches, processes and services. Specifically, it can include:
- Data protection or cover for a breach of data or privacy crisis – So, if the customer data you have on file is breached, you may have to pay thousands in compensation and legal fees. If this should happen, you will also need to fund an investigation into how it happened, pay to notify those affected, man multiple phone lines of customers responding to the notification and regulatory fines.
- Network security liability – This includes third-party damages as a result of access being denied, costs related to data on third-party suppliers and costs related to the theft of data.
- Multimedia liability cover – This includes intellectual property rights infringement, for example, if you used a picture from a search engine on your website and the owner of that image tried to sue you for using it without their permission. Third-party damages covered can also include specific defacement of website.
- Extortion liability cover – This covers losses due to a threat of extortion and professional fees related to dealing with the extortion.
Some of the elements of a cyber liability cover may be interconnected or overlap with cover from existing products, including those for business continuity, third-party supply chain issues and professional indemnity. Even if this overlap does exist, a decent cyber liability policy will ensure cyber risks are fully catered for.