Cyber Protection

3rd Party Coverage

Definition

Cyber / Privacy Liability

Defense and indemnity for claims against you related to cyber events / data breaches

Media Liability

Defense and Indemnity for claims of libel, slander, copyright infringement, trademark infringement, invasion of privacy, etc.

Regulatory Defense & Fines

Defense and indemnity coverage for claims brought by federal, state, local or foreign governing body related to privacy regulations, data breaches, cyber events, and fines and penalties where insurable by law

PCI Fines & Assessments

Coverage for assessments, fines or penalties imposed by banks or credit card companies due to non-compliance with the Payment Card Industry Data Security Standard (PCI DSS)

Management Liability

Defense and indemnity coverage for management should they be deemed legally responsible for a breach; Excess D&O coverage for cyber-related events only

Defense (Outside the Limits)

Additional defense coverage outside of the limits of liability.

Contractual Liability

Defense and indemnity coverage for events that are part of a contractual agreement; Affirmative coverage or a carve back to a breach of contract exclusion

Bodily Injury / Property Damage

Defense and indemnity coverage when a cyber event results in physical damage or injury

1st Party Liability

Definition

Breach Response & Remediation

Coverage for response and remediation costs associated with a breach; This includes legal fees, customer notification, IT/digital forensics, and crisis media relations, among others

Cyber Business Interruption

Coverage for financial losses due to a cyber event that causes degradation to your computer system; Usually requires a time retention (see Business Interruption Waiting Period)

Dependent Business Interruption

Coverage for financial losses due to a cyber event when a 3rd party provider experiences an outage that causes you disruption; 3rd parties often include cloud providers or other software/services providers

System Failure

Coverage for business interruption resulting from an unplanned or unintentional outage, often caused by employee error or power outage

Business Interruption Waiting Period

Time retention typically applied to cyber business interruption, dependent business interruption, and system failure.

Cyber Extortion / Ransomware

Coverage for the costs to respond to a cyber extortion (ransomware) event, including forensics experts to investigate the attack, experienced negotiators, and sometimes ransom payments in virtual currencies

Ransomware Payment Provision

Provision for how the policy responds to a ransomware claim; “Pay on behalf” indicates the carrier will tender payments due when a ransom event occurs; “Reimbursement” indicates the insured will pay out of pocket and then seek reimbursement for covered losses

Digital Asset Damage

Coverage for costs to rebuild electronic data and other digital assets after a cyber-event, like recovering offsite backups, etc.

Cyber Crime

Coverage for the theft of funds from a failure in your security, often by a hacker stealing login credentials; This is often referred to as fund transfer fraud and may be covered on a crime policy

Social Engineering

Coverage for theft of funds by using deception or impersonation, where a criminal tricks you into parting with your funds; Often ties into a business email compromise

Client Funds

Coverage extension to cover theft of client funds in the insured’s care, custody, or control

Invoice Manipulation

Coverage for the release or distribution of a fraudulent invoice or fraudulent payment instruction to a third party as a result of a cyber- event

Telephone Hacking

Coverage for costs associated with unauthorized and fraudulent telephone calls

Crypto Jacking

Coverage for costs associated with unauthorized use of the insured’s computer processing power to mine crypto currency

Reputational Harm

Coverage for lost income from an adverse media event due to a cyber event that damages the insured’s reputation

Breach Response (Outside the Limit)

Coverage for 1st party breach costs outside of and in addition to the policy aggregate limit

Bricking

Coverage for physical damage to IT hardware resulting from a cyber event that renders the equipment useless and unable to be safely repaired

Bodily Injury / Property Damage

Coverage for bodily injury or property damage which results from a cyber-event.

Pollution

Coverage that would apply should the insured experience a cyber-event which causes a pollution condition

BYOD

Coverage for any device used by the company’s employees in the course of normal business operations, no matter who the device belongs to

Additional Services

Definition

Cyber Risk Report

An assessment of the company’s business cyber security often providing a score and actionable security recommendations; Carriers that can provide this usually only need the company’s URL to do an outside-in scan and provide this for all quotes

Proactive System Monitoring

Ongoing and regular scanning to monitor for security vulnerabilities; If an issues are flagged, carrier will proactively notify the insured and offer assistance to mitigate; Only provided to policy holders

Pre-claim Assistance

Access to software and services including cyber risk applications, breach response plans, data breach calculators, and other risk management tools to manage cyber risk

Expert Security Advice

Open access to Cybersecurity experts to ask questions about the company’s security; usually access is provided via phone or email