First-party coverages – These coverages protect the insured business directly and typically include the following:

a. Data breach response expenses: Coverage for costs associated with investigating and responding to a data breach, including forensic investigations, legal fees, notification costs, credit monitoring services, public relations, and crisis management.

b. Business interruption losses: Reimbursement for income loss and extra expenses incurred due to a cyber incident that disrupts business operations.

c. Data restoration and recovery: Coverage for expenses related to restoring or recovering data that has been damaged, destroyed, or stolen due to a cyber incident.

d. Cyber extortion: Coverage for expenses related to responding to extortion demands or threats, such as ransomware attacks.

Third-party coverages: These coverages protect the insured business against claims made by third parties and typically include the following:

a. Network security and privacy liability: Coverage for legal defense costs, settlements, or judgments resulting from claims made by third parties due to a failure to protect data, unauthorized access, or privacy breaches.

b. Media liability: Coverage for claims related to defamation, infringement of intellectual property rights, or other content-related issues arising from the use of digital media.

c. Regulatory and legal expenses: Coverage for legal expenses and fines resulting from investigations or regulatory actions related to data breaches or privacy violations.

Intentional acts: Most policies exclude coverage for cyber incidents caused intentionally by the insured or with their knowledge and consent.

Prior known breaches: Coverage may not be provided for cyber incidents that occurred before the policy inception date or known breaches that were not disclosed during the application process.

War and terrorism: Cyber liability insurance typically excludes coverage for damages caused by acts of war, terrorism, or political unrest.

Bodily injury and property damage: Most policies exclude coverage for physical harm to individuals or property damage resulting from a cyber incident.

Intellectual property infringement: Some policies may exclude coverage for claims related to the infringement of intellectual property rights, such as patent or copyright infringement.

Unencrypted data: Some policies may exclude coverage for data breaches involving unencrypted data, as encryption is often considered a security best practice.