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09

Cyber & data

Cover arranged around incident response, business interruption from a digital event, and third-party liability for data.

Risk context

The response service attached to a cyber policy is often the part that matters most in the first hours of an incident, and it differs materially between insurers.

Insurers increasingly treat specific controls, including multi-factor authentication, tested backups and patching discipline, as conditions rather than rating factors.

Concepts that appear in this class

Incident response
Access to forensic, legal and communications support, usually via an insurer-appointed panel.
Digital interruption
Loss of income following an event affecting systems, subject to a waiting period stated in the policy.
Third-party liability
Claims from others arising from a data or security event, including regulatory defence costs where insurable.
Control conditions
Some cover is conditional on stated security controls being in place and maintained.

These are general descriptions of terms commonly used in this class of insurance. They do not describe your policy. Whether any of them apply, and on what terms, is determined by the wording, schedule and endorsements issued to you.

What moves the terms

  • 01Volume and sensitivity of records held
  • 02Dependence on systems for trading and payments
  • 03Security controls in place and how they are evidenced
  • 04Supplier and outsourced provider concentration