Cyber Insurance

Standard version

First Party

• Incident Response – from an actual or suspected cyber event – often nil deductible
• Business Interruption – loss of net profit and continuing operating expenses
• Data and System Recovery – increased cost of work, data recovery costs, additional business interruption mitigation
• Cyber Extortion – extortion payments and negotiation

Third Party

• Privacy and Network Security Liability– liability following data breach or failure of network security:
• PCI DSS contractual fines and penalties
• Consumer redress fund
• Regulatory fines and penalties (where legally insurable) – GDPR
• Media Liability – liability following defamation or infringement online

The Highlights

• Contingent business interruption –for outsourced technology providers
• System failure triggers – human error, programming error, power failure
• Standard extensions:
• Emergency incident response expenses within 48 hours for SME and Middle Market insureds – nil deductible
• Betterment costs – improvement of software and applications
• Cyber crime – direct financial loss following cyber theft
• Reward expenses
• Telecommunications fraud
• Pay on behalf for incident response expenses
• Flexible incident response providers
• Rogue employee
• Voluntary notification
• Voluntary shutdown
• By endorsement: Reputational Harm Extension, Social Engineering Fraud
• Cyber terrorism
• Worldwide coverage

Simplified version

• Network or data extortion
• Computer Crime – Theft of money by Unauthorized assess or by Vendor or supplier/ Executive impersonation/ Client impersonation (Social Engineering Fraud).