Cyber Liability Insurance

Cyber Liability Insurance

Cyber liability insurance covers the cost for a business to recover from a data breach, virus, or other cyberattack. It also covers legal claims resulting from the breach. Any business that stores sensitive data in the cloud or on an electronic device should have cyber liability insurance.

Need for Cyber Liability Insurance

Your computer system might also contain sensitive data that belongs to other parties such as customers, employees, or vendors. If the data is lost or compromised by a hacker, the owners might sue your company for damages. Your firm could also incur substantial notification expenses. Virtually states have laws requiring businesses to inform individuals whose personal information has been compromised in a data breach. You can protect your business against the costs associated with data breaches by purchasing a cyber liability policy.

What’s Covered?

  • Loss or Damage to Electronic Data – Covers the cost to replace or restore electronic data or programs damaged, destroyed, or stolen in a data breach, whether the data belongs to your firm or someone else. Losses must result from a covered peril such as a hacker attack, a virus, or a denial of service attack. Policies may also cover the cost of hiring experts or consultants to help preserve or reconstruct data.
  • Loss of Income and Extra Expenses – Covers income losses you suffer and extra expenses you incur to avoid or minimize a shutdown of your business after your computer system fails due a covered peril. Some policies, including the Hartford and Travelers policies cited above, cover dependent income losses. These are income losses you sustain when your network provider’s system has been breached.
  • Cyber Extortion – Applies when a hacker breaks into your computer system and threatens to commit a nefarious act like damaging your data, introducing a virus, initiating a denial of service attack, or releasing confidential data unless you pay a specified sum. Coverage typically extends to any extortion payment you make and expenses you incur in responding to the demand.
  • Notification Costs – Covers the cost of notifying parties (voluntarily or as required by law) affected by a data breach. May also cover the cost of providing credit monitoring services and establishing a call centre.
  • Damage to Your Reputation – Some policies cover costs you incur for marketing and public relations to protect your company’s reputation following a data breach. This coverage may be called Crisis Management.

What’s not covered?

  • Any dishonest or improper conduct – If you have been dishonest while filling up your proposal form or if you have deliberately kept some information from the insurance company while buying the policy, then your loss will not be assessed by the insurance company. Also, if the losses are caused intentionally or due to any illegal activities, then your insurance company will not cover you for such a loss.
  • Bodily injury or property damage – The cyber insurance policy does not cover any bodily injury, sickness, emotional distress, disease or death of a person. Also, the destruction of any property will not be covered under this policy.
  • Unsolicited communication – The Cyber Safe Insurance policy excludes the risk associated with any sort of unasked for communication in any form like audio recording, videotaping, telephone marketing etc.
  • Unauthorized Collection of data – If you are involved in any kind of collection of personal or client related data illegitimately, then the loss incurred due to same will not be covered by your cyber insurance policy.
  • Immoral or obscene services – In the investigation, if it is discovered that the losses suffered by you have been because of any connection with racist, extremist, pornographic or any other immoral/obscene services, then your losses will not be covered by your cyber insurance policy.
  • Contractual liability
  • Cyber terrorism
  • Trading in virtual currencies
  • Natural perils
  • Losses in connection with any religious or political activities

Why Us?

Emedlife offers cyber security coverages and services to all businesses. Our experienced team also offers tips to help you manage your risks resulting from data loss, data breaches, denial of service attacks, malware, viruses and more.

Talk to us today for all your Cyber Liability insurance needs at an affordable price and for reliable claims management.

For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.

Who needs Cyber Liability Insurance?

Agricutlure/Farm, Construction, FMCG, Hospitality, Real Estate, Transport & Logistics, Energy, Manufacturing, Healthcare


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