Data breach coverage, also referred to as cyber breach coverage, provides coverage for an event in which private information is potentially put at risk. Depending on the particular policy, it may provide first-party coverage for privacy breach response costs, notification expenses, credit monitoring and breach support. It may include indemnity for reasonable legal, public relations, advertising, IT forensic, call center, credit monitoring, and postage expenses incurred in responding to a privacy breach.
It may also provide network asset protection for recovery of data lost due to accidental damage or destruction of electronic media or computer hardware, administrative or operational error, or computer attacks. Coverage may be included for business interruption income loss resulting from total or partial interruption of computer system caused by lost or corrupted files due to destruction or damage to electronic media or computer systems.
The policy may also cover cyber extortion and terrorism by providing indemnity for extortion expenses and extortion monies incurred as a direct result of a credible cyber extortion threat. There may also be coverage for income loss and interruption expenses as a result of interruption of the insured’s computer system due to a cyber-terrorism attack.
Third-party coverage for privacy regulation defense and penalties may provide coverage for defense of regulatory proceedings brought by federal, state or local government agencies for violation of privacy regulations and related fines and penalties.
This coverage provide valuable protection in the event the lawyer or law firm is the target of a date breach exposing client files to risk of revealing personally identifiable information. OBLIC provides this coverage without additional cost to its policyholders. This insurance is also available on the open market. Cyber breach coverage gives an added layer of protection for practicing attorneys. If you have questions about this topic, please feel free to contact Gretchen Mote, Director of Loss Prevention at OBLIC.