Understanding Cyber Coverage

The cyber protection policy provides coverage for cyber-related third party liability claims, first party losses and cybercrime claims.

We are providing brief descriptions of what is covered under your cyber protection policy. These are for informational purposes only. Your policy wording will govern.

Third-party liability coverages:

Network and information security liability Covers a breach of sensitive information in the firm's care, custody or control. Also, provides coverage if the firm's network security is compromised, leading to a third party being harmed (DDoS, Virus transmission, etc.).
Regulatory defence and penalties Covers costs to comply with regulatory proceedings and related fines and penalties.
PCI fines and assessments Payment card industry fines or assessments as a result of a credit card breach in your system.
Multimedia content liability Covers IP infringement, such as using a logo, slogan, picture, music or video, without the proper license.
Funds transfer liability A common type of fraud where an attacker redirects funds before or during a transfer. This is typically accomplished through social engineering techniques, sometimes stemming from email spoofing or even business email compromise.

First-party loss coverages:

Breach response services Initial breach triage support and guidance from Coalition and/or their vendors (legal, forensics, etc.)
Breach response costs Once it is determined a breach has occurred, these are the costs to remediate the breach, notify affected individuals, credit monitoring, etc.
Digital asset restoration Restoration or recreation of data that has been corrupted, deleted, encrypted, etc.
Direct and contingent business interruption, and extra expenses from security failure and systems failure Covers the net income loss as a result of network downtime of the firm's systems, or third party systems that they rely on, caused by a bad actor beaching the firm’s system (Security Failure) or an IT error/system glitch (System Failure).
Reputational harm loss Net income loss as result of the damage to the firm’s reputation in the marketplace.
Computer replacement and bricking Covers hardware that has been damaged due to a security breach of the firm’s system.
Crisis management and public relations The cost to hire a public relations firm, call centre and other support to help the firm manage the breach.
Court attendance Costs to attend court when tied to a security breach.
Criminal reward A reward to help lead to the safe retrieval of the firm’s data.
Proof of loss preparation expenses Covers the cost of an accountant helping document your lost income and additional expenses from a disruption in your computer network.

Cybercrime coverages:

Funds transfer fraud, personal funds fraud, and social engineering Covers money fraudulently transferred from a firm’s account, not limited to a trust account, including if the firm sends the money themselves after being duped into doing so by a bad actor.
Service fraud including crypto-jacking A bad actor steals the firm's computing power to supply crypto mining operations.
Invoice manipulation The firm’s invoice is manipulated leading their client to send the money to the wrong people.
Phishing Covers your client’s loss as a result of a phishing attack impersonating you as well as costs related to preventing and mitigating such incidents.