Indagard Insurance Services Guide to Cyber Risk and Insurance

INDAGARD INSURANCE SERVICES
one-of-a-kind widgets. You take the widget from the
customer to be cleaned at your workshop. Overnight, a
fire starts and destroys the dirty, but functioning, widget.
You are liable for the costs to replace the widget. However,
you may also be liable for the costs incurred by the client
as a result of losing the widget.
Cyber Policy works in a similar same way – third party
portion of the cover protects your business against a legal
action and costs incurred by others as a results of their data
being compromised in your possession.
SHOPPING, INTERRUPTED
A large online retailer’s ($5M turnover) website was hacked
and included a link to a competitor’s website when the hackers
got access to their customer’s sensitive data. Business
Interruption portion of the policy paid $800,000 to repair
the website, comply with regulations and notify affected
individuals.
Multimedia costs
Coverage can extend to social media damages; for
instance, libel and slander. Additionally, it can also cover
the costs of copyright infringement.
A CYBER INSURANCE GUIDE - PAGE 32