Cyber insurance (a.k.a. Cyber Liability, Internet Liability, Electronic Media Liability, and Network Security & Information Liability insurance, among other countless monikers) helps companies weather the storm from many technology-based risks that might befall them, including risks associated with a company's information technology infrastructure and activities such as a systems failure event, cyber attack, or data breach.
Cyber insurance also provides coverage for privacy liability events (that is to say, the loss of protected, private information irrespective of whether it is through a hack or simply a misplaced laptop, USB stick, or even file cabinet), as well as media liability events (for example, if you are accused of defamation, infringement, or other wrongful acts with respects to your website or other electronic media).
Of course, in this day in age, information technology is more likely than not at the center of every business activity. Not to mention, almost every business has an online presence whether that be a website, mobile app, or Facebook page.
This is why we recommend that every business, in every industry, and of every size add cyber insurance to their insurance portfolio.
What does cyber insurance cover?
Coverage provided by cyber insurance policies may include 1st party coverage against losses such as data destruction, extortion, and theft, as well as hacking, ransomware, denial of service attacks or even systems failure events that cause business interruption losses; often times they also include 3rd party liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions in your technology, failure to safeguard data, multimedia wrongful acts such as defamation, as well as regulatory fines and penalties; other benefits can include coverage for costs related to post-incident breach response and public relations services, and extra expenses to restore the normal operations of your business, among others.
In summary, cyber insurance is designed to cover many forms of loss and liability you could be exposed to in your business' everyday use of technology.
What does cyber insurance not cover?
In general, most cyber policies do not cover intangible damage that you might suffer following a cyber incident. These intangibles are things like:
Reputation and brand harm
Resulting loss of future revenue (that is to say, loss of revenue or income that extends beyond the business interruption event)
Lost value of intellectual property such as patents, among others
In addition, all cyber insurance policies include a variety of exclusions to coverage. For example, many cyber insurance policies exclude coverage for property damage, bodily injury, and pollution losses, or liability that might result from a physical cyber attack. This probably isn't a big deal for a lawyer or eCommerce firm, but is of greater concern for an airline, utility, or manufacturer. (Not to worry though, Coalition offers coverage by endorsement for all three of property damage, bodily injury, and pollution).
What does Coalition cover?
We found existing cyber insurance policies lacking, so we created our own. We are proud to offer what, we believe, is the most comprehensive cover for technology risks of all forms.
To learn more about our coverages, click the button below:
Whether you buy insurance from us, or any other insurance carrier, we highly recommend that you work with an experienced broker who can help you understand the nuances between policies, and carefully review policy details and coverages. All policies are not created equal.