Cyber Liability Insurance
Cyber liability insurance, also known as cyber insurance or data breach insurance, is a type of insurance policy that cover financial losses and liabilities associated with cyber threats and data breaches. It helps companies to mitigate the costs and damages resulting from cyberattacks, data breaches, and other cyber-related incidents. Cyber liability insurance can help cover the costs associated with data breaches, ransomware attacks, or data privacy violations.
Cyber liability insurance is relevant and beneficial for firms that handle sensitive data, rely on technology, and face potential cyber risks.
Businesses of all sizes, Technology companies, Retail and e-commerce businesses, Financial Institutions and Professional service firms can consider Cyber liability insurance.
Lifecycle Fire and General can help clients to access their data security risks and the potential financial impact of cyber incidents. Hence, offer an appropriate policy for their business.
Cyber liability insurance policies typically offer a range of coverage options.
- First-party coverage:
- It covers the costs and legal liabilities arising from a data breach, including legal defence costs, settlements, and judgments resulting from third-party claims for damages.
- Provides coverage for legal expenses incurred in responding to regulatory investigations or lawsuits related to a data breach or cyber incident. It can also cover fines or penalties imposed by regulatory authorities.
- Provides coverage for legal expenses incurred in responding to regulatory investigations or lawsuits related to a data breach or cyber incident.
- It can also cover fines or penalties imposed by regulatory authorities.
- Third-party coverage:
- Protects against third-party claims for damages resulting from a security failure or breach that compromises the data or systems of others.
- Cover legal defence costs, settlements, and judgments arising from negligence claims, privacy violations, or failure to protect sensitive information.
- Multimedia coverage claims related to defamation, infringement of intellectual property rights or unofficial use of media content in online or digital communications.
- Other coverage:
- Cover the costs of data breaches, including forensic investigations, notifying affected individuals, credit monitoring services, public relations efforts, and legal expenses.
- Cover costs of cyber extortion threats like ransomware attacks, negotiating fees, and costs associated with contacting cybersecurity specialists.
- Cover financial losses from fraudulent activities, such as social engineering attacks, phishing, or funds transfer fraud.
Some benefits offered by Cyber Liability Insurance
- Cover the expenses of hiring a legal expert to regain extortion money and prepare the company against future cyber threats.
- Cover the expenses of copyright violations, defamation claims, and internet exploitation under certain types of intellectual property.
- Expenses to restore or recover previous business records.
- Cover against monetary loss due to cyber-attack.
- Legal expenses incurred in defending claims are covered.
- Cover Legal fees or penalties from the government regulatory authority after an investigation.
Here are some exclusions that cyber liability insurance may not cover
- Data Breach incidents that were known and occurred before the effective policy date.
- Loss resulting from war, acts of terrorism, or acts of warlike operations.
- Bodily injury or property damage caused by cyber events.
- Provide comprehensive coverage for intellectual property disputes, such as patent infringement or copyright violations.
- Loss of market value, loss of business reputation, or damage to a company’s brand resulting from a cyber incident.
- For losses resulting from intentional acts, fraudulent activities, or criminal conduct by the insurer.
Cyber liability insurance offer coverage for a wide range of cyber risks and data breaches with few exclusions and limitations that may vary depending on the insurance provider and policy terms. The client must review the specific terms and conditions of a cyber liability insurance policy to understand the coverage, exclusions, and limitations that apply.
Lifecycle Fire and General offer a Cyber liability insurance plan that covers a range of financial losses and liabilities associated with cyber incidents and data breaches. We suggest an insurance plan that helps businesses recover from cyber incidents, reduce monetary loss, and protect their reputation in an increasingly digital and interconnected business landscape. The clients can customise their cyber liability insurance to match their unique needs and risk profile.