THIRD PARTY PRIVACY LIABILITY

 covers sums the insured is legally obligated to pay as a result of privacy breach or unintentional breach of privacy regulations.

• damages to third parties
• regulatory fines and penalties
• claims expenses – defense costs, accounting costs

NETWORK SECURITY COVERAGE

covers damages and claims that insured is legally obligated to payarising out of computer attacks caused by failures of security including theft of client information,identity theft, negligent transmission of computer viruses and denial of service liability

 What type of attacks does it cover?

• unauthorized access of the insured’s computer system = hacker
• unauthorized use of insured’s computer systems by authorized person = rogue employee or malicious insider
• denial of service attack
• transmission of malicious computer code, malware, or virus
• alteration, destruction, deletion of data on insured’s computer system

FIRST PARTY COVERAGE

 covers direct first party losses that an insured may incur in connection with a privacy or security breach

• notification expenses
• forensic costs to investigate a breach
• public relations/crisis management expenses
• credit monitoring expenses – for victims of identity/credit card theft
• data recovery expenses  – costs to recover, replace, or restore lost/stolen data
• business interruption expenses –  lost income due to an inability to access data,  hourly wait deductibles

INTERNET & MEDIA LIABILITY

covers third party losses that an insured may incur as a result of errors and omissions in communication of information on the internet, also protects against defamation and/or invasion of privacyclaims resulting from copyright and/or  trademark infringement

• defamation, libel, disparagement (including product disparagement)
• breach of implied contract arising out of the submission of ideas
• invasion of privacy
• infringement of copyright, trademark or unauthorized use of material
• breach of agreement relating to product placement
• plagirism

CYBER EXTORTION COVERAGE

cyber extortion is a type of online crime in which a criminal threatens to damage or shut down a company’s website, e-mail server, or computer system or threatens to expose electronic data or information belonging to the company unless the company pays the criminal a specific ransom amount.

• ransom payment
• expenses incurred in responding to a cyber demand