What is Cyber Liability Insurance?

Cyber Liability Insurance addresses the exposures and risks involved in the use of computers, computer networks and online communications that traditional general liability insurance products do not. The policy provides financial damage coverage for intangible property such as websites, data and the loss of online business, when compromised by a virus or hacking attack.

To simplify Cyber Liability we can break down coverage to two elements, First Party Cyber Liability and Third Party Cyber Liability:

  •  First Party Cyber Liability relates to the costs of your own system damage in retrieving, restoring or replacing programs and data that has been lost or damaged as a direct result of a cyber peril. First party cyber liability also includes your own system business interruption, covering the reduction in your profit during the period that your computer systems are unavailable or operating at less than a full operational capacity.
  • Third Party Cyber Liability protects your company against claims for a third party’s financial loss arising from a hacking attack or virus emanated from or passed through your system (the onward transmission of a virus). Third Party Cyber Liability also covers third party losses arising directly from their inability to access your system and the loss or theft of their data, or data that you are held responsible for.

For further information or advice on this subject, contact Adam Lawrence on 0118 916 5484 or complete an enquiry form.

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*Information correct as of 1st May 2016

Author: Adam Lawrence | February 25th, 2014

Contact the author

Adam Lawrence
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk