1E9Ct5D

Privacy notification. This covers the cost of statutorily mandated notices toindividuals whose personal information may have been compromised by abreach. The coverage often includes the cost of credit monitoring for potentiallyimpacted individuals.Theft losses. Some policies afford coverage for events in which a policyholdersuffers a loss due to wrongful transmission of data. For instance, if a breachresults in an unauthorized transfer of funds.Data recovery. Some policies afford coverage for the cost of replacement ofhardware, as well as the labor costs, of restoring systems impaired by a breach.Social media/Networking coverage. Some carriers are now offering coveragefor corporate social networking activities, including claims for defamation,advertising, libel, and slander.Cloud computing. The more common (to the extent there is commonality) cyberpolicies exclude losses incurred by third cloud providers. However, as cloudstorage becomes more widely used, the insurance market has responded withproducts that will protect the cloud providers against loss or theft of data theyhave been charged to store. See Track 2, Client Confidentiality in the Cloud, formore details.Whether the losses arise from misfeasance or malfeasance, the risk of loss is high.However, the risk of loss is even higher when cyberterrorism is behind the attack. Oneneed not go beyond the Sony hack to grasp the breadth and depth of the damage