Question:What is Cyber Risks Insurance?

Answer:

Cyber liability covers organisations against the risks arising out of operating a computer
network.

Liability arising from on-line publishing (such as a web site) as well as from traditional media
such as brochures can also be covered.

There is an option which provides professional indemnity cover appropriate to technology

companies.

It not only covers the Insureds liabilities to others, it also provides a form of specialised
business interruption cover which covers the Insureds loss of income arising out of
computer down-time. In addition, the actual cost of recovering lost data is also covered.

Question:Why purchase Cyber Risks Insurance?

Answer:
The incredible pace of growth in technology worldwide has produced a society which
has become totally dependent on technology. This has caused a greater connectivity
between people and organisations than has ever existed in human history.
Unfortunately this has brought with it new risks which traditional insurance is ill-
equipped to cope with. These risks include viruses, hacking attacks, liability arising
out of online publishing and cyber-crime; to name but a few.

Cyber liability insurance has been designed to address these new and unusual
threats faced by organisations operating in a high-tech world.

Question:Who is insured in terms of a Cyber Liability policy?

Answer:

The policy covers not only the entity named on the schedule, but also includes

Its subsidiaries

o The subsidiary does not need to be named in the policy schedule, but the Insured
does need to own more than 50% of the shares.

Employees and directors of the Insured, provided that the liability arises out of their duties
for the Insured.

Other organisations that the Insurers agree to include under this policy.

Question:Does a Cyber Liability policy cover Own Damage?

Answer:
Liability policies are designed to cover the costs that the Insured must pay in
order to make good the damage they did or the loss they caused to others (the
third party).
By contrast, an own damage' policy covers the costs which the Insured incurs
in restoring its own property after some mishap to its own possessions.
o Burglary and fire policies are examples of own damage policies.
 A Cyber Liability policy provides both liability and own damage cover. The following
table provides a very brief indication of the policys cover.
Insuring
Nature Very Brief Description
Agreement

1. Professional
Liability Covers the Insureds liability arising out of negligence in their work.
Services

2. Multimedia Covers the Insureds liability arising out of any physical or electronic
Liability
Liability publication.

3. Security & Covers the Insureds liability arising out of its negligence in preventing a
Liability
Privacy Liability computer security breach.

Provides a form of business interruption cover and also covers other own
4. Data Recovery Own
& Loss of Income Loss
damage in the form of the cost of restoring lost data.

5. Privacy
Regulatory
Liability Liability as a result of not complying with laws relating to privacy.
Defence &
Penalties

It mitigates the potential damage to the Insureds brand (own damage)

6. Crisis
Both
Management Costs and it also covers the Insureds liability arising out of compliance with priv
legislation.

Covers costs which would otherwise be incurred by the Insured in

Own
7. Data Extortion
Loss
preventing a loss and liability