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Cyber Risk

Most notably, but not exclusively, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network. The policies could cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by regulators, fines and penalties, and loss resulting from identity theft.

In addition, the policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion.

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