Cyber policies typically combine first-party coverage for breach response, forensics, notification, credit monitoring, business interruption, and extortion payments with third-party coverage for claims by affected individuals and regulators.
Coverage is highly variable between carriers, with no standardized form.
Alternative Names:
Cyber Insurance, Network Security Coverage
Why it Matters?
For law firms this is the coverage that responds to a compromise of client data, and the first-party breach response component is usually more valuable than the liability limit because it funds the forensics and notification that consume the early weeks. The absence of standardization means comparison requires reading the forms rather than the limits, and exclusions for unencrypted data or failure to maintain stated controls can defeat coverage entirely.
Frequently Confused with
Related terms
Frequently asked questions
What does cyber coverage typically include?
What commonly defeats cyber coverage?
