Cyber insurance—the essentials
Produced in partnership with Simon Cooper of Ince & Co

The following Insurance & Reinsurance practice note produced in partnership with Simon Cooper of Ince & Co provides comprehensive and up to date legal information covering:

  • Cyber insurance—the essentials
  • What is cyber insurance?
  • Development of cyber insurance
  • Types of cyber insurance
  • Scope of cyber insurance
  • Interaction with other insurances
  • Fair presentation of the risk to cyber insurers
  • Policy terms and features
  • Policy variations
  • Data protection
  • More...

Cyber insurance—the essentials

What is cyber insurance?

In essence, cyber insurance provides cover against the consequences of a cyber event, which may take the form of a cyber attack or an accidental cyber failure. The insurance protection may be limited to financial compensation for first and/or third-party loss or it may include the provision to the insured of support from IT professionals, PR experts and lawyers to assist the insured to recover from the cyber incident and any resultant regulatory or third party issues.

Development of cyber insurance

Cyber is a relatively new class of insurance which has only really gained traction in the 21st century. It first became established in the US in response to Federal laws concerning the management of personal data. In particular, it sought to provide funds to insureds who had lost the personal data of third parties in order to enable the insured to comply with its regulatory obligations to notify and to compensate the individuals whose data had been lost.

During the second decade of the 21st century, however, it became apparent that cyber risk was not limited solely to data lost. Rather, in a society of increasing interconnectivity and digitalisation, it was increasingly widely recognised that a cyber incident could lead to a wide range of losses including business interruption, contingent business interruption, theft, blackmail, property damage and even personal injury. The scope of

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