Cyber Insurance provides cover for financial loss and expenses that businesses may suffer as a result of a Cyber Event, including cyber attacks from malware or other invasive software, cyber extortion and social engineering. Claims covered under a Cyber policy are very broad, but are typically three core things: Liability (privacy lawsuits and regulatory defence), Internal Financial Loss (extortion, notification expenses, data recovery, business interruption, crime/theft), and Emergency Incident Response (costs incurred from responding to a Cyber Event).

A Cyber Event triggers a claim on a Cyber Insurance policy and can be caused by several different scenarios:

What are the Coverages Available?

1. Privacy Breach Notification & Crisis Management Costs

When a cyber incident occurs, whether it is through some kind of invasive software (malware, ransomware), phishing or social engineering scheme, or other form of cyber attack, there is usually a privacy breach as a result – i.e. private or confidential information/data is exposed. This policy section provides cover for the costs associated with responding to a privacy breach, including:

2. Privacy & Security Liability

This section protects you from claims/lawsuits as a result of a privacy and security wrongful act, such as:

• • Damage or loss of use to a third-parties computer system or data; and
  • Transmission of malware or a denial of service attack to a third party;

3. Cyber Extortion

Cyber extortion is defined as a threat against the insured computer system to provide ransom in order to prevent a Cyber Attack. Coverage for this can include: the payment of a ransom, negotiation & mediation costs, crisis management costs & costs to resolve a security threat, and investigation costs to determine the cause of the extortion threat.

4. Business Interruption – Loss of Profits & Operational Expenses

Coverage for loss of profits and additional operating expenses incurred because of a cyber event.

5. Data Recovery & System Damage

This section covers the costs and expenses for lost, damaged or destroyed IT systems, records, and data. This can include the retrieving, repairing, restoring or replacing of data or systems, including the removal of malware.

6. Regulatory Defence and Fines

This section provides cover for defence costs and regulatory fines that have resulted from a cyber incident, such as a privacy or security breach.

7. Media Liability

Coverage for the following incidents that occur from your information through traditional and digital media:

1. Social Engineering & Funds Transfer

The fraudulent transfer or theft of funds caused by instructions made by a person purporting to be an authorized employee, outsourced provider or customer of yours. This coverage is typically sub-limited.

2. Contingent Business Interruption

Coverage for loss of profits and additional operating expenses incurred as a result of an interruption to a dependant business/supply chain partner, caused by a cyber event.

3. Payment Card Data Security Liability

Coverage for loss of profits and additional operating expenses incurred as a result of an interruption to a dependant business/supply chain partner, caused by a cyber event.

What are the Cyber specific Exclusions?

For more details on standard Cyber Insurance exclusions, see our recent article here.

** The above are general examples only; each insurance policy is different and standard exclusions may apply. Please read your PDS and contact your insurance advisor to review your specific policy. **

What are the Price Influencers?

What are the quote requirements?

Please complete this Proposal Form and return to our brokers below to arrange a Cyber Insurance quote.

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