Internet / Computers / Cyber Risks

Cyber Risks

Some of the problems with standard polices when it comes to insuring Cyber Risks are as follows:

  • Exclusions and definitions in policies limit cyber-risk coverage.
  • Many companies do not have errors and omission coverage or such coverage contains security breach exclusion.
  • Advertising injury coverage under General Liability does not completely address intellectual property infringement, content, and advertising offenses over the Internet.
  • Under property policies, Business Interruption/Extra Expense is triggered if the direct loss is insured. Property direct losses were designed for physical assets and physical perils, not information assets and electronic risk.
  • Intellectual property stored electronically is valued as “data.”
  • Crime policies contain confusing exclusions and limitations with respect to employee dishonesty and computer fraud.
  • Policy coverage is not global.

More insurance companies are addressing these issues by providing specifically designed coverage whilst at the same time standard forms of coverage are becoming more restrictive, with cyber risks exclusions appearing in property and casualty policies.

Businesses with a web site or a computer network face potential liabilities associated with the technology based risks of:

  • intellectual property
  • privacy
  • network security
  • data integrity

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For definitions of various forms of insurance refer to Insurance Marketplace

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