Does a Cyber Liability policy cover Own Damage?

  • 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.
    • 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 policy’s cover.

Insuring Agreement

Nature

Very Brief Description

1. Professional Services

Liability

Covers the Insured’s liability arising out of negligence in their work.

2. Multimedia Liability

Liability

Covers the Insured’s liability arising out of any physical or electronic publication.

3. Security & Privacy Liability

Liability

Covers the Insured’s liability arising out of its negligence in preventing a computer security breach.

4. Data Recovery & Loss of Income

Own Loss

Provides a form of business interruption cover and also covers other own damage in the form of the cost of restoring lost data.

5. Privacy Regulatory Defence & Penalties

Liability

Liability as a result of not complying with laws relating to privacy.

6. Crisis Management Costs

Both

It mitigates the potential damage to the Insured’s brand (own damage) and it also covers the Insured’s liability arising out of compliance with privacy legislation.

7. Data Extortion

Own Loss

Covers costs which would otherwise be incurred by the Insured in preventing a loss and liability

Subject: 
Cyber Risk