If a company is in custody of 3rd party information, such as a sensitive customer or personal data, your company could be liable for damages associated with such a breach. Cyber coverage will protect your company for defense costs and damages having to do with a cyber incident involving the compromise or theft of data involved in a security breach.

In the event of a cyber incident, a company is going to be subject to direct costs associated with such an incident. Cyber insurance would cover such costs, including those for Notification, Forensic Investigation, Public Relations and Credit Monitoring, to name a few.

If your company systems are subject to a cyber attack that impedes or interrupts your ability to conduct normal business activities, business interruption, as a part of a comprehensive part of a cyber insurance policy, will cover costs such as lost income and remediation expenses.

This has become more and more relevant over time. In the event that your company is subject to a cyber extortion event, cyber insurance coverage can step in to cover associated costs to your business.