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V. Cyber Liability Insurance is a Must-Have for BusinessA. Commercial General Liability CoverageThe standard Commercial General Liability policy was not written with cyber risks inmind. In fact, the bulk of the policy provisions have been around since before SteveJobs started tinkering in his garage. The CGL policy generally provides two separateinsuring agreements. Coverage A insures for liability damages arising from bodily injuryor property damage. The standard definition of property damage is two-fold:a. Physical injury to tangible property, including all resulting loss of use of thatproperty. All such loss of use shall be deemed to occur at the time of thephysical injury that caused it; orb. Loss of use of tangible property that is not physically injured. All such lossof use shall be deemed to occur at the time of the “occurrence” that causedit. 17The 2007 edition added to that definition: “for the purposes of this insurance, electronicdata is not tangible property.”While there are several older cases finding that a data breach is property damage, the2007 amendment appears to resolve that question. On the other hand, the introductionof malware or worms may result in actual physical damage to the end users computerhardware, thereby meeting the above definition of property damage. Counsel shouldconduct a careful review to determine whether the alleged data breach resulted in anypotentially covered property damage.17 ISO, CG 00 01 12 07.