A quick introduction to commercial cyber insurance

commercial cyber insurance

Commercial general liability insurance policies usually exclude damages arising out of losses of electronic data because electronic data often isn’t considered “tangible” property.

Companies can best protect themselves from cyber-related financial losses with a specific cyber insurance policy. These typically offer liability coverage (and sometimes partial property coverage) for losses related to data breaches. Most of these policies cover a commercial insured’s losses related to the loss of personally identifiable information and expenses from a data breach. These expenses can include legal expenses, investigating a breach, notifying people affected by the breach, managing the insureds’
reputation and other crisis-management expenses, and recovering lost or corrupted data.

Some policies also offer coverage for business interruption losses – losses related to expenses and lost revenue resulting from a breached system. Others may also offer “cyberextortion” coverage, which covers costs resulting from an extortion event such as ransomware. It’s important to note that this is a relatively new market, so policies may differ widely on the policy terms and conditions