Cyber Risk & Cyber Liability Insurance

The number of exposures businesses face continues to increase and as organizations become more globally networked and complex, insurance policies need to adapt to the changing environment. Some organizations have discovered gaps in what is and what is not covered after an attack. Unfortunately for them, by then it is too late.

Cyber insurance is a tailor-made insurance offering providing comprehensive cover for liability and expenses a business may incur arising out of unauthorized use of, or unauthorized access to, physical and electronic data or software within an organization's computer network or business. Cyber insurance policies can also provide coverage for liability, costs, and expenses arising from network outages, the spreading of a virus or malicious code, computer theft, or extortion.

Traditional business insurance policies have tended to only cover "tangible" assets such as PCs, laptops, and other mobile devices. Developing exposures have highlighted that electronic data is not always considered to fall under the definition of tangible assets and this is one area where Cyber Insurance is designed to fill a gap.

Cyber insurance also provides cover for business interruption and the cost of notifying customers and regulatory investigations or actions in case of a breach, without the requirement for physical damage that is a standard trigger under property policies. When looking at policy options, organizations should consider coverage that addresses these issues.

Policy premiums vary depending on the industry, type of data held, number of data records, and the risk management policies and procedures implemented to ensure the security and integrity of that data.