Cyberinsurance Policies

Internal criminal acts. Coverage for malicious acts perpetrated by employees using computers.

Hackers. Losses resulting from a direct attack on your company's network, or the use of your network as a platform or gateway to launch a third-party attack.

Viruses. Coverage for the costs associated with a virus-related interruption in business and the reconstruction of any lost data.

Media liability. Coverage for exposures related to the misuses of trademarks, domain names, plagiarism, copyright infringement, defamation and libel on the Internet.

Privacy violations. Coverage for exposures stemming from the misuse of personal information.

Crisis management. Funding provided to help a company handle the public relations fallout from a security breach.

Global risks. Coverage provided for security threats regardless of where an attack is launched from or the damage that occurs.

Here's what to ask your insurance company when shopping for a cyberinsurance policy


  • Will you perform a gap analysis on my company's current business insurance policies to determine where there may be holes in coverage?
  • What types of e-risk events do you cover and which do you exclude?
  • Do you offer coverage for cyberlosses resulting from terrorism?
  • Are additional costs for crisis management and communications included in the policy?
  • What is your coverage capacity? (Should be $25 million at minimum.)

Third-Party Providers

  • Whom do you partner with for risk assessments?
  • Can we choose from a group or is there only one option?


  • How long have you been covering cyberrisk?
  • How many policies have you issued?
  • Will you provide a client reference?
  • How familiar are you with my industry and business?
  • Do you have the in-house staff (underwriters, claims specialists, legal professionals and technologists) to handle the claims process?

International Coverage

  • Does the policy have a geographic definition? If we are sued abroad will the policy cover any liabilities?
  • Does the company have its own global operations or does it partner with another carrier?

For more information on e-risk coverage, check out the following sites

American International Group

The Chubb Group of Insurance Cos.

Lloyd's of London

Marsh & McLennan Cos.

The St. Paul Cos.

Zurich North America

Copyright © 2002 IDG Communications, Inc.

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