Classifications of Cyber Insurance

Cyber Insurance can be categorized into several key types based on the coverage they provide:

1. First-Party Coverage: This type of cyber insurance covers the direct costs to the insured organization following a cyber event. It typically includes loss or damage to digital assets (data or software), interruption to business operations, cyber exhortation where a hacker demands a ransom, reputational damage, and physical damage resulting from a cyber event.
2. Third-Party Coverage: This covers the costs associated with legal claims or disputes with third parties following a cyber event. It often includes privacy breach costs, investigation costs, defense costs, civil damages, and regulatory fines and penalties.
3. Network Security Liability: This covers third-party claims arising from alleged inadequacies in the insured’s network security. It could be a failure to prevent transmission of malicious code to third parties, unauthorized access or unauthorized use of corporate systems, and denial of service attacks.
4. Privacy Liability: This covers third-party claims arising from alleged violations of privacy rights due to a breach of corporate systems.
5. Media Liability: This typically covers third-party claims arising from alleged infringement of intellectual property rights, defamation, and breach of privacy.
6. Cyber Crime: This covers direct financial loss to the insured as a result of a cyber event. It includes theft of money, digital assets, or other property as a result of a computer crime.

Remember, the specifics of these classifications can vary from one insurance provider to another. It’s always important to thoroughly understand the terms and coverage of your cyber insurance policy.