Before deciding on a cyber program to fit your business’ needs, you need to understand what cyber can cover and decide what options are most important for you.
Follow the link to quote up to 50 cyber companies. The best part is that you’ll receive a comparison illustrating which coverages from the glossary below are included and which are not.
3rd Party Coverage
This means that the breach or damage was done to someone else. So it wasn’t your information that was hacked, but rather a client’s, a vendor’s, an employee’s etc..
Cyber / Privacy Liability
Coverage for claims against you related to cyber events or data breaches involving other people’s information.
- Claim Example 1
Your email is hacked and emails go out to your clients that includes a virus. You may be liable for the damage casused by the virus to your customer systems.
- Claim Example 2
A hacker gets into your system and is able to gain all of your client data. They then sell that data online including credit card numbers, dates of birth and social security numbers. You are responsible for alerting your customers of the breach and any damages caused.
Breach Response & Remediation
When a breach happens, iCoverage for response and remediation costs associated with a breach; This includes legal fees, customer notification, IT/digital
forensics, and crisis media relations, among others
Defense and indemnity for claims of libel, slander, trademark infringement, invasion of privacy, etc.. How closely do you monitor all of the information on your website?
Regulatory Defense & Fines
Many local, state and other governing bodies have started issuing fines and penalties for companies who experience a breach. You are responsible for the safe keeping of third party data. After a claim, you may face a penalty that adds insult to injury! (Subject to availability by law)
PCI Fines & Assessments
If you have a claim for non-compliance with the Payment Card Industry Data Security Standard (PCI DSS), you may be subject to fines or penalties imposed by banks or credit card. This coverage can help to defend and in some cases pay those assessments.
Defense Costs (Inside or Outside the Limits)
When assessing how much 3rd party cyber coverage you want, it’s important to understand whether the defense in inside the limit of liability or outside. Inside sounds like a good thing, but it’s not. If defense is inside the limit of liability, that means that any defense provided by the insurance company is coming from your main liability limit.
So for instance, if you have $1,000,000 of 3rd party liability coverage and your defense costs $500,000, that only leaves you $500,000 to pay any damages.If you have defense outside the limit, then the defense costs don’t erode your liabiliy limit leaving you the full $1,000,000 to pay damages.
Bodily Injury / Property Damage
Did you know, damage resulting from data breach or cyber incidents is excluded from general liability coverage. So if you have a cyber claim that results in bodily injury or property damage, you will want to have that coverage on you cyber policy.
1st Party Coverage
This means that the breach or damage to you or your electronic assets. In other words, your information was ransomed, or your bank account was drained in a hack.
Cyber Business Interruption
This is your loss of income due to a covered cyber claim that causes failure or degradation to a computer system.
Dependent Business Interruption
Similar to Cyber Business Interruption coverage, but for 3rd party outages. This would pay a claim if you couldn’t operate because of a vendor or supplier such as a software or internet provider.
Business interruption coverage resulting from an unplanned or unintentional outage, often caused by employee error or power.
Business Interruption Waiting Period
This is the amount of time you have to wait until a Cyber Business Interruption claim becomes payable. Think of it as a deductible, but measured in time instead of money
Ransomware / Cyber Extortion
Unfortunately, this is becoming a common claim. A hacker locks down your website or server, website or other computer system and demands payment to allow access. They often want payment in the form of Bitcoin or other cryptocurrency. Ransomware / Cyber Extortion coverage will pay for forestic investigation and negotiation of restoration of your systems. Your policy will either pay on your behalf or reimburse you the ransom depending on you Ransomware Payment Provision.
Digital Asset Damage Coverage
Pays for the costs to rebuild electronic data and other digital assets after a cyber-event, like recovering offsite backups, etc.
Cyber Crime / Funds Transfer Fraud
Coverage for the theft of your funds stemming from a security failure such as a hacker stealing login credentials.
Let’s say your bookkeeper gets an urgent email from you saying that you owe $25,000 to a supplier today to keep your shipments coming. It’s from your email and marked urgent. So they cut a digital check to a new vendor only to find out that the email was a fake. That’s a social engineering scheme. It’s fraud by deception or impersonation where they trick you into sending funds. This could also happen in the form of Invoice Manipulation.
Client Funds Coverage
This coverage extends your insurance to cover theft of client funds in your care, custody, or control.
Coverage for costs associated with unauthorized and fraudulent telephone calls.
Even if you don’t know anything about cryptomining, you’ve probably heard that it’s energy intensive. In order to keep their costs down, some bad actors will hijack some of your computing power to mine for crypto. This is coverage to pay for the cost to you for that unauthorized use.
In tightnit industries, word may get out if you have a cyber or media event. This coverage pays for to help you mitigate your losses due to a damaged reputation including hiring a PR firm to get ahead of the situation.
When a computer no longer functions, it’s a brick. This is coverage to pay for hardware that is now unusable or irreprable because of a covered claim.
Pays for pollution claims that are caused by a covered cyber-event.
Bring Your Own Device
Employees may use their personal devices in your business operations. This coverage makes it so those devices are covered the same as company hardware.