There is always a risk of cyber and privacy losses as long as businesses have electronic or paper records, access to the internet and email.   Businessowner policies generally include limited coverage for cyber liability while standalone policies offer much more robust coverage and risk management services.

Cyber / Privacy coverage includes insurance for both first party and third party liability.

First Party coverage generally includes notification and crisis management expense.  This section covers the costs following a breach including investigation, crisis management and public relations, notification and credit monitoring.  Business interruption and extra expense coverages may also be available.  Theft of property can include data assets, cyber extortion, computer fraud, and social engineering.

Third Party liability coverages include defense and settlement costs arising out of the insured’s failure to properly care for private data.   It can include costs to investigate, defend and in some cases settle fines, credit card fines and penalties and website media content liability

Coverage triggers vary by policy but generally include failing to secure data, loss by an employee, acts caused by non-insureds and loss from theft or disappearance of private property.

The type of data can vary depending on the carrier including not just electronic records but paper records as well.   The definition of insured, claim triggers and types of services offered are some of the items that can differ between policies.

Please call 877-477-9650 for more information about cyber and privacy policies and ways to reduce exposures to these types of losses.