Is Your Company Covered?
stolen in the United States.
cyber breach was $5.85 million dollars.
a cyber attack? Most businesses have
policies covering property damage,
business interruption and professional
liability. Cyber liability insurance should
be added to this list.
insurance?
to cover the costs associated with an
electronic security breach. Whether
the breach is due to a criminal attack,
human error or a system glitch, cyber
liability insurance protects the costs
incurred when electronic data is
compromised. Data includes personally
identifiable information, such as an
individual's name associated with their
social security number, driver's license,
credit card number or debit card number.
Typically, cyber liability policies
provide first party and third party
insuring business interruption from
a network being shut down, costs
related to cyber criminals who steal
personal identification information that
can be monetized, costs associated
with restoring business assets stored
electronically, costs of customer
notification, costs of providing credit
monitoring services to victims, and costs
of lawsuits relating to the data breach.
cyber liability insurance?
of a data breach is $5.85 million.
the costs of detection of the breach
(average cost $417,700); notification
to victims of the breach (average cost
$509,237); post-data breach costs such
as legal expenditures, identity protection
services, and regulatory interventions
(average cost $1,599,996); and lost
business costs, such as turnover of
customers and damage to reputation
(average cost $3,324,959).
general liability policy for coverage
in the event of a cyber attack, this is
probably a mistake, as explained below.
liability policy cover a cyber
attack?
answer to this question. It depends. In
light of the Insurance Services Office,
Inc., change to its standard insurance
forms, which excludes cyber breaches
from its commercial general liability
policy, it seems that a commercial
general liability policy is insufficient to
provide coverage for the costs involved
in a cyber breach.
of property covered by a commercial
general liability policy. In claims
alleging lost or damaged electronic
data, software, computers or computer
systems, the key issue will be whether
the claim falls under the policy's
definition of "property damage." Most
commercial general liability policies only
employment, professional liability and medical malpractice,
and liquor liability.
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