ANSWER: A type of insurance designed to cover consumers of technology services or products.*
According to the International Risk Management Institute, here is an in depth guide to cyber insurance:
Cyber liability is a type of insurance that covers losses that may result from errors or negligence from engaging in business using electronic devices or services, such as:
- Exchanging Information
- Putting Information at Risk Online on the Internet
- Losing and/or Corrupting Data within its Internal Electronic Network
Personal information such as Social Security or credit card numbers that is exposed or stolen by hackers or criminals that have gained access to a business’s network could pose a great problem for both the client and the business. Cyber liability covers data breaches such as the one mentioned and many other situations where businesses are at risk of losing confidential client data. It also covers expenses that come with data breaches, such as notification costs, credit monitoring, defense costs, fines, penalties, and damages due to identity theft.
Cyber liability also covers risks that come from content on a business’s website and also exposures from:
- Business Interruption
- Data Loss/Damage
- Computer Fraud
- Funds Transfer Loss
- Cyber Extortion
*This information is a guide only, it is not legal or financial advice. Always do due diligence to ensure you are not breaking the law.