Cybersecurity Insurance Gap Coverage

Liability
  • Regulatory and legal defense costs
  • Breach of privacy compensation
  • Incident response costs
  • Communication and media
  • Fines and penalties
  • Directors and officers
  • Product liability
  • Professional indemnity
  • Network security/security failure
Property
  • Data and software loss
  • Business interruption
  • Physical damage
Kidnap and Ransom
  • Cyber ransom and extortion
Crime and Fidelity
  • Financial theft and/or fraud
Liability  

Media

Network

Privacy        

Third-party 1st party / 3rd party  1st party / 3rd party
  • Infringement of copyright, trademark or domain name
  • Advertising injury
  • Personal injury
  • Unauthorized access
  • Transmission of malicious code
  • Denial of service
  • Theft / destruction of data
  • Cyber extortion
  • Business interruption

Exposed

  • Personally identifiable information (PII)
    - or -
  • Protected Health information (PHI) data via hacker, employee or lost device

Type 1 (most companies)

  • Internal network protection only
    • Includes VPN, e-mail, file server, etc…
  • Front facing eCommerce business
    • Privacy, policy, data protection
  • Maintaining critical infrastructure
    • System level protection, monitoring, reporting

Type 2 (developer / manufacturer)

  • Developing computing based product
    • Framework, IoT, applications, web service, etc….
  • Developing life or death products
    • Automobiles, pacemakers, robots

Errors & Omissions

Remediation Regulatory

 

Payment Card

Third-party

1st party

1st party / 3rd party

1st party

  • Negligence or errors in the product or performance of a service
  • Breach of a customer’s data (indirect)
  • Failure to perform
  • Investigation
  • Public relations
  • Customer notification
  • Credit monitoring
  • Liability coverage for violations
  • Investigation and defense costs
  • Fines and penalties
  • Unauthorized disclosures
  • Forensic services
  • Reimburse fraud charge PCI fines and penalties
  • Card reissuance costs

Coverage Types

Type 1 (most companies)

  • Internal network protection only
    • Includes VPN, e-mail, file server, etc…
  • Front facing eCommerce business
    • Privacy, policy, data protection
  • Maintaining critical infrastructure
    • System level protection, monitoring, reporting

Type 2 (developer / manufacturer)

  • Developing computing based product
    • Framework, IoT, applications, web service, etc….
  • Developing life or death products
    • Automobiles, pacemakers, robots

Covered Cyber Insurance Losses

(Example)

First-party costs 

  • Forensic and regulatory investigation
  • Legal advice to determine notification and regulatory obligations
  • Data breach notification and response
  • Credit monitoring/call centers
  • Crisis management and public relations
  • Lost profits and extra expense during network shutdown (business interruption)
  • Network, software and data restoration
  • Wire transfer fraud and social engineering

Third-party costs

  • Legal defense
  • Settlements, damages, and judgments
  • Liability to banks for re-issuing credit cards
  • Response to regulatory inquiries
  • Regulatory fines and penalties

 

 


Cyber Insurance Exclusions

(Example)

  • Criminal or fraudulent act
  • Negligent disregard for computer security
  • Loss to the internet, ISP, computer or system not owned or operated
  • Bodily injury
  • Electrical or mechanical failure
  • Contractual liability
  • Act of terrorism, war, military action
  • Fire, smoke, wind or Act of God
  • IP Theft, infringement of patents
  • Disclosures of trade secrets or confidential information
  • Seizure or destruction of system/data by government
  • Fines, penalties, fees
  • Non-monetary relief
  • Violations of securities law
  • Research, examine or correct a deficiency
  • Unlawful collection or sale of information
  • Unsolicited dissemination of communication
  • Malware, denial of service or intrusion not directly aimed at the policyholder
  • Failure to disclose a loss of PII if an executive of the firm was aware of such a loss
  • Salaries, benefits, expenses of employees
  • Inspection, upgrading, maintenance, repair or remediation of a computer system

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Cyber Insurance