Cyber Insurance Policies Do Not Cover All Risks

To follow are examples of types of risks that are not covered or partially covered by most Cyber Risk policies:

  • The cost to implement security upgrades after an attack
  • A comprehensive written security program that is typically paired with a regulatory fine or penalty
  • Damage, corruption, or deletion of Intellectual Property
  • Audits performed periodically that are most likely required for several years after a data breach
  • Restoration of a damaged reputation of a business

For example, coverage under a Cyber Risk policy for the damage, corruption or deletion of Intellectual Property is typically limited to the cost of restoration or replacement, not taking into consideration the asset value of the stolen Intellectual Property to the company. In addition, most Cyber Risk Policies also will not provide coverage for upgrading security after an attack has occurred.
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1 vote, 3.00 avg. rating (70% score)
Categories: Breach Of Security, Cyber Liability, Intellectual Property Infringement, Risk Management, Theft

Cyber Liability Claims Not Covered Under Most General Liability Policies

General Liability policies cover lawsuits alleging bodily injury, property damage, personal injury, and advertising injury.  The property damage coverage requires damage be to tangible property as opposed to intangible property.

Most data breaches include damage to intangible property stored on hard drives.  As a result, General Liability carriers argue that there is no coverage for data breach.  However, General Liability carriers are increasingly providing endorsements for Data Breach.

The purchase of stand-alone Cyber Risk policies are becoming increasingly common for businesses with data breach exposure.  Of course, these policies cover a lot more than just data breach.  Other coverages include Media Liability, Cyber Extortion, Denial of Service, and loss of business income.

Source:  Business Insurance, April 2, 2012

1 vote, 4.00 avg. rating (80% score)
Categories: Breach Of Security, Cyber Liability, Identity Theft, Theft

Spy Eye Hacker Software Makes Purchase Of Cyber Liability Insurance A No-Brainer

The odds that a cybergang will stealthily turn your PC into a bot this summer and use it to carry out all manner of cyberattacks just notched notably higher.

Security analysts anticipate a surge in SpyEye attacks the rest of this year. “Every level of criminal, from the lowest to the highest rungs, can now use one of the deadliest Swiss Army knife hacking toolkits in the world,” say Sean Bodmer, senior threat intelligence analyst at network security firm Damballa.
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1 vote, 5.00 avg. rating (90% score)
Categories: Cyber Liability, Theft