No cyber security plan can eliminate all liability risks. Fortunately, there are now insurance products that specifically cover cyber risks.

Cyber liability policies cover both third parties (your clients and vendors, for example) and first parties (your company). Specific policy provisions will differ with each insurance company offering such coverage, but they typically include:

1. Network and Data Security:

This covers damages to third parties due to compromised identity or financial information, privacy leaks, the transmission of computer viruses, blocked access or “denial of service” for authorized users, and failure to notify third parties of a security breach (where required by law). Many policies also cover paper documents as part of data security.

2. Electronic Media Liability:

This covers damages from personal injury, domain infringement, copyright violation, and similar claims due to information published on a company Website or via email or social media.

3. Security Breach Remediation and Notification Expense:

Costs covered include forensic and legal fees incurred to determine whose information was affected, the cost of notifying those parties, establishing a call center for third-party inquiries, and credit monitoring.

4. Computer Program and Electronic Data Restoration Expenses:

This coverage applies to expenses incurred to restore your data and equipment lost or damaged due to a computer virus, rogue employee theft, or hackers.