A cyber liability policy is designed to help businesses manage and mitigate the risks associated with conducting operations in the digital world. It provides coverage for various cyber-related incidents, including data breaches, cyberattacks, and other cyber threats.

1. First-Party Coverage: This includes costs incurred directly by the business as a result of a cyber incident, such as:

   • Data Breach Response: Costs related to notifying affected parties, providing credit monitoring services, and public relations efforts.

   • Data Restoration: Expenses to restore or recover lost or damaged data.

   • Business Interruption: Loss of income and additional expenses incurred due to a cyber event that disrupts normal business operations.

   • Cyber Extortion: Ransom payments and costs to negotiate with cybercriminals.

2. Third-Party Coverage: This covers claims made by external parties affected by the cyber incident, including:

   • Legal Defense and Settlements: Costs to defend against lawsuits and pay any resulting settlements or judgments.

   • Regulatory Fines and Penalties: Coverage for fines and penalties imposed by regulatory bodies for failing to protect sensitive data.

   • Network Security Liability: Claims arising from the failure to prevent unauthorized access or the spread of malware to third parties.

   • Media Liability: Coverage for issues related to online content, such as copyright infringement, defamation, and privacy violations.

3. Tailored Coverage: Policies can be customized to fit the specific needs and risks of different businesses, depending on their size, industry, and exposure to cyber threats.