Cyber and Privacy insurance is designed to cover the risks involved in using technology services or products. More specifically, Cyber and Privacy policies are intended to cover both liability and property losses that can happen when a business engages in electronic activities like selling on the internet, or collecting data within its internal network.
Most notably (but not exclusively), Cyber and privacy policies cover a business’ liability for a data breach, in which the customers’ personal information (like credit card or Social Security numbers) is exposed or stollen. The policies cover a variety of expenses associated with data breaches, including
- Notification costs
- Credit monitoring
- Costs to defend claims by state regulators
- Fines and penalties
- Loss resulting from identity theft