What is Cyber Liability Insurance?

“Cyber” Liability is insurance coverage specifically designed to protect a business or organization from:

Liability claims involving the unauthorized release of information for which the organization has a legal obligation to keep private or confidential
Liability claims alleging invasion of privacy and/or copyright/trademark violations in a digital, online or social media environment
Liability claims alleging failures of computer security that result in deletion/alteration of data, transmission of malicious code, denial of service, etc.
Defense costs in State or Federal regulatory proceedings that involve violations of privacy law; and
The provision of expert resources and monetary reimbursement to the Insured for the out-of-pocket (1st Party) expenses associated with the appropriate handling of the types of incidents listed above

The term “Cyber” implies coverage only for incidents that involve electronic hacking or online activities, when in fact this product is much broader, covering private data and communications in many different formats – paper, digital or otherwise.