Privacy liability
Respond to certain claims involving the unauthorized access, disclosure, or handling of protected information.
Third-party privacy and security protection
Cyber Liability Insurance
Customers, employees, vendors, and regulators may allege that a business failed to protect sensitive information or maintain appropriate network security. Cyber liability insurance can help address certain covered claims, investigations, defense costs, and settlements.
Coverage availability, eligibility, and terms vary by carrier and state. A quote request does not bind coverage.
Network security liability
Address certain allegations that a security failure allowed malware, unauthorized access, or other harm.
Regulatory response
Consider defense for covered privacy or security investigations and penalties where legally insurable.
What cyber liability coverage may address
Cyber liability is generally the third-party side of a cyber policy. Coverage depends on the definitions, claim trigger, exclusions, retention, and any sublimits in the selected form.
- Defense costs for covered privacy or network security claims
- Covered settlements and judgments
- Regulatory investigation and response costs
- Payment card industry assessments when included
- Certain media liability claims when included
- Claims involving data handled by a covered vendor
Cyber liability versus data breach response
Data breach response coverage generally pays eligible costs the insured incurs to investigate and respond to an incident. Cyber liability generally applies when another party makes a covered claim. A well-structured cyber policy may combine both.
Review contracts and dependent risks
Customer and vendor contracts may contain data-security, indemnification, insurance, and notification requirements. The policy should also be reviewed for incidents involving cloud providers, payment processors, and other technology vendors.
Common questions
Cyber Liability Insurance FAQ
Who needs cyber liability insurance?
Any organization that stores sensitive information, processes payments, uses networked systems, or can be accused of causing a privacy or security loss should evaluate the exposure.
What is the difference between cyber insurance and cyber liability?
Cyber insurance is a broad term that may include the business's own recovery costs and third-party liability. Cyber liability specifically focuses on certain claims brought by other parties.
Does cyber liability cover incidents caused by vendors?
Some policies may cover qualifying incidents involving designated service providers, but definitions, waiting periods, sublimits, and exclusions vary.
Talk through your options