Stories of massive data breaches (cyber events) have become a common part of corporate America. Businesses, large and small, are not immune to breaches occurring, on a daily basis, all across America. Corporate executives and small business owners are taking a closer look at methods to minimize or eliminate financial impact posed by these attacks. Cyber insurance policies started appearing in the late 1990’s. Policies have evolved and changed over time based on the complexity and severity of claims being reported. It is important to understand the coverage you need, coverage being offered and understanding some of the risks you may need to self-insure against. Comparisons of cyber insurance policies based strictly on price alone are dangerous. Work with your tech departments/personnel to understand the impact cyber events could have on your business and the customers you serve. Engage your insurance professional in the discussion and request basic information on available products in the insurance marketplace.


Cyber insurance policies are divided into first-party and third-party coverage. Some First Party and Third-Party coverage components include:


  • Forensic Investigation Data Loss & Restoration
  • Network Income Loss Cyber
  • Extortion
  • Theft & Fraud


  • Notification Costs
  • Credit Monitoring
  • Costs
    – Litigation Expenses
    – Fines & Penalties
    – Crisis Management
  • Costs
    – Online Defamation & Copyright/Trademark Infringement

Businesses storing and maintaining customer information, collecting online payment information or using the cloud are vulnerable to cyber events. Start a conversation and review the implications of a cyber event in your business.