Caps on Coverage

CF: What all will cyber insurance cover? Does is vary according to policy?

JS: There are caps on what they will cover. For example, maybe you only have a policy that covers up to $5 million. So if your breach resulted in $20 million of damage, you would be on the hook for the other $15 million. They’ll cover obviously legal fees related to the data breach and they’ll oftentimes cover the investigation because you need to bring in forensics to go and figure out exactly what happened, when did it happen, what did they take, why did it happen, the impact of everything and the scope of it. That type of data forensics they’ll cover. And then oftentimes they might cover things like the actual consumer impact, so if they need to do things like put in place credit monitoring for impacted individuals if there was financial information that leaked. Again, the cap or limit is important to keep in mind, because they won’t cover everything.