Cyber Crime Insurance first began in the 1990’s, during the dot.com boom. In the early days, these policies covered lawsuits, which came about from breaches in security on the company computer system. Nowadays, protecting their data is the primary motivation for most seeking cyber crime insurance coverage. Although they don’t offer a one size fits all solution, there is some standardization across most policies.
What Does Cyber Crime Insurance Cover?
In its most basic form, a cyber policy covers claims that are related to both data security and data privacy, and there are differences between the two. Data security claims are relevant to losses arising from the compromised integrity of the insured’s computer system. Data privacy claims, on the other hand, are more concerned with private information being exposed or disclosed in the wrong way. This can include personal, health, medical, financial and other information of a confidential matter.
When is Coverage Triggered?
In the same way as E&O insurance and professional liability insurance policies, cyber crime insurance policies are enacted when a claim is filed. The claim must be filed within the same year as the event that it’s being filed in response to. When it comes to computer crime, it’s always best to move quickly because the crimes can escalate at an alarming rate.
Control of the Claim
Cyber Crime Insurance policies vary when it comes to who controls the response to an event and also with regard to the defense of covered lawsuits. You will need to check with your insurer for more information on your particular policy.
Get Cyber Crime Insurance Quote Today
Don’t take any risks with your data; make sure you’re covered. Contact Peter Green Insurance for a quote.