Bloomberg BNA Corporate Accountability Report Guest Article: A Policyholder’s Guide to Insurance Coverage for ‘‘Cyber’’ Events (Part II)

08/16/2013


Insurance policies are as varied as the risks they address,from ordinary commercial general liability coverage to more exotic coverages such as political risk insurance or warranty and indemnity contracts. However, with respect to the risks commonly associated with a ‘‘cyber event,’’ three traditional coverage types are relevant: liability insurance, property insurance, and crime/fidelity insurance.

Liability Insurance
As it relates to ‘‘cyber’’ claims, liability coverage may include not only general liability coverage, but directors and officers liability (D&O) or professional liability/ errors and omissions (E&O) coverage. Commercial general liability (CGL) insurance typically contains two principal coverage parts, A & B. Coverage A insures sums that the insureds become legally obligated to pay as damages because of ‘‘bodily injury’’ or ‘‘property damage’’ caused by an ‘‘occurrence’’ during the policy period. Coverage B typically insures sums that the insureds become legally obligated to pay as damages because of ‘‘personal and advertising injury’’ caused by various enumerated ‘‘offenses’’ committed during the policy period, including false arrest or imprisonment, malicious prosecution, wrongful eviction, slander, libel, business disparagement, publication that violates a person’s right of privacy, use of another’s advertising idea in an advertisement, or infringing on another’s copyright, trade dress, or slogan. Both Coverage A and Coverage B usually also provide the insurer with the right and duty to defend suits seeking covered damages.

Excerpted from Bloomberg BNA Corporate Accountability Report, August 16, 2013. To view full article, click on the PDF linked below.

PDF - A Policyholder’s Guide to Insurance Coverage for ‘‘Cyber’’ Events (Part II)

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