This type of coverage is designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network.

Most notably, but not exclusively, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network.

The policies cover a variety of expenses associated with data breaches, including:

  • notification costs
  • credit monitoring
  • costs to defend claims by state regulators
  • fines and penalties
  • loss resulting from identity theft

In addition, the policies cover liability arising from website media content, as well as property exposures from:

  • business interruption
  • data loss/destruction
  • computer fraud
  • funds transfer loss
  • cyber extortion