Definition of Cyber Liability

Cyber liability (or, cyberliability) is a reference to Internet-based risks and those relating to information technology infrastructure and activities. Such are typically excluded from traditional commercial general liability policies. Coverages under cyberinsurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security audits, post-incident public relations and investigative expenses, and criminal reward funds. (Adapted from White House report)


Lawsuits over cyber issues have increased significantly, both due to increasing cyber crime and regulations requiring the disclosure of events, such as SEC guidance and state reps covering the loss of PPI (protected personal information). Companies that disclose loss of PPI are often subjected to suits.



More and more businesses are purchasing insurance to cover potential cyber liability. If you don't know whether your business has cyber liability insurance, it probably doesn't. Most policies written in past years do not include cyber liability insurance.



To learn more, visit: www.whatiscyberinsurance.com

Saturday, January 7, 2023

Trends in Cyber Liability for 2023

 

 

Some 2023 trends in cyber liability include increasing cyber regulations, “inside-out” underwriting, the return of ransomware, and social engineering fraud. Cyber regulations are increasing due to changes in the threat landscape and bans on ransomware payments. “Inside-out” underwriting is the use of third-party scanning technologies to help detect security weaknesses. The return of ransomware is a major issue, as ransomware losses have dropped in the past few months, but they have increased in severity and ransomware-as-service is on the rise. Finally, social engineering fraud has outpaced ransomware ones this year, fueled by the global shift to hybrid working.

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