As technology evolves there are new ways of cracking firewalls and creatively defrauding the system. Many business address their cyber exposure simply by adding an endorsement to their FI Bond or General Liability policy. While it does add some coverage to an area that is otherwise exposed, it does not fully protect the risk as a dedicated Computer Crime or Cyber Liability policy would.
A Computer Crime policy is a digital asset protection cover limited to the insured’s costs associated with a computer breach, and does not extend to any of the third party liability, crisis management costs, regulatory penalties, business interruption costs, investigation/forensic costs, data extortion, restoration or recreation of data costs, or costs associated with the hacking of data, programs, data processing, voice or telefax transfers that would be covered under a Privacy & Cyber Liability policy.
Cyber Liability Insurance covers the financial losses that may result when a business engages in various electronic activities. It provides both first party coverage (including digital asset protection), and provides coverage for losses the insured may become liable to pay to third parties.
While each carrier wording has its own unique wording, the overall approach to the exposure is generally consistent across the industry. Contact INTECH for further information and assistance.