Policies that cover a variety of both liability and property losses that may result when a business engages in electronic/online activities (virtually every business), such as selling on the Internet or collecting customer or employee data.
Cyber and privacy policies cover a business’ liability for a data breach in which their customers’ personal information is exposed or stolen by someone who has gained access to the firm’s network.
The policies cover a variety of expenses associated with data breaches including:
- notification costs
- credit monitoring
- costs to defend claims by state regulators
- fines and penalties
- loss resulting from identity theft
Policies also cover liability arising from website media content, as well as property exposures from:
- business interruption
- data loss/destruction
- computer fraud
- funds transfer loss, and (e) cyber extortion