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You are viewing ARCHIVED CONTENT released online between 1 April 2010 and 24 August 2018 or content that has been selectively archived and is no longer active. Content in this archive is NOT UPDATED, and links may not function.Extract from Article by Judy Selby
What Is Cyber Insurance?
Cyber insurance is a relatively new and still evolving form of coverage designed to address the emerging information-related risks facing today’s companies. These risks include breach of privacy, failed network security, and media liability. Unlike more traditional forms of coverage, there are no standard cyber insurance policy forms, provisions, definitions, or exclusions.
First-party coverage under a cyber policy can be triggered by a variety of events that have become far too familiar to modern enterprises, including the malicious destruction of data, accidental damage to data, power surges, IT system failure, cyber extortion, viruses, and malware. Typical first-party coverages include legal and forensic services to determine whether a breach occurred and, if it has, to assist with regulatory compliance, costs to notify affected employees and/or third parties, network and business interruption costs, damage to digital data, repair of the insured’s reputation, and payment of ransom costs. Third-party coverage is available for legal defense costs, settlements, regulatory fines, and damages incurred after a cyber incident.
Cyber insurance typically provides for the retention of an attorney – a “breach coach” – to coordinate the insured’s response to a cyber incident. An experienced coach can build an effective team of specialists – basically, a cyber swat team – and efficiently guide the company through the forensic, regulatory, public relations, and legal issues that arise from a security incident. Given the complexities of the various laws pertaining to data breach notification, as well as the focus paid by regulators, the media, and the plaintiffs’ bar to data breaches, coverage for the retention of a skilled breach coach is perhaps the greatest benefit of cyber insurance.
Read the complete article at Do Cyber Insurers Care about Information Governance?