Cyber Insurance: The Basics of Coverage
In observance of "Cyber Monday", a trusted counsel for Fidens Insurance Brokers, Annmarie Giblin Esq. provides an overview of cyber insurance coverage that answers: Who needs cyber insurance? What should companies do before buying a cyber insurance policy? How a cyber policy interacts with professional liability?
Matthew Magner, a Senior Underwriting Officer with Chubb Professional, further discusses the above questions and lists the essential elements of a cyber insurance policy including:
Liability insurance for data breaches to cover defense expenses, awards and settlements in connection with a lawsuit;
Notification/crisis management expenses, which can include costs for legal counsel, public relations, forensics, drafting and dissemination of notices and credit monitoring
Business interruption and extra expense coverage, which will provide lost income and cover expenses to facilitate the insured’s return to operation
Electronic vandalism, which provides coverage to pay for blank media and transcription for electronic data corrupted in the event of cyber incident;
Extortion coverage to cover ransoms for hackers who hold a network or data hostage; an
Defense of regulatory proceedings and coverage for fines and penalties.
We encourage all companies to review the full article found here. It must be stressed that the aspects of each company will vary significantly and it is important to discuss their particular business with an experienced broker to ensure that the appropriate coverage is in place. Fidens Managing Director, Brian Leidell, commented: "When analyzing our diverse new client portfolios, it is alarming the number of companies who were erroneously led to a costly 'one-size fits all' cyber policy that is riddled with serious concerns."
Annmarie Giblin is an attorney for Leader & Berkon LLP and can be contacted here.
Brian Leidell spearheads Fidens innovative cyber insurance program and can be contacted here.