What is Internet Liability Insurance/Cyber Insurance?
Internet liability insurance, also known as cyber insurance, is a type of insurance that provides protection against the financial losses or damages that may result from a wide range of online risks and exposures. Cyber insurance can be purchased by individuals and businesses to protect against potential losses or damages caused by online activities, such as data breaches, cyber attacks, or online defamation.
There are many different types of internet liability insurance coverage available, including:
- Data breach coverage: Provides protection against the costs associated with a data breach, such as notification and credit monitoring services for affected individuals, legal fees, and regulatory fines.
- Cyber extortion coverage: Provides protection against threats to release sensitive information or to disrupt a company’s operations unless a ransom is paid.
- Business interruption coverage: Provides protection against financial losses resulting from disruptions to a company’s operations caused by a cyber event, such as a data breach or a cyber attack.
- Network security liability coverage: Provides protection against claims made against a company for failing to adequately protect against a cyber event, such as a data breach or a cyber attack.
- Online defamation coverage: Provides protection against legal costs and damages resulting from online defamation, such as libel or slander.
Internet liability insurance policies may have different terms and conditions, depending on the specific risks and exposures being insured. It is important for policyholders to carefully review the terms and conditions of a cyber insurance policy to ensure that it provides the coverage needed to protect against potential losses or damages.
Cyber insurance can be complex and may require the expertise of an experienced insurance professional. Policyholders should work with an insurance agent or broker who is familiar with the specific risks and exposures associated with online activities and can help them find the right insurance coverage to meet their needs.
