Cyber and Network liability policies generally cover
liability and property losses that result from electronic
activities, primarily data breaches. The scope of coverage
varies by carrier, but for the most part all of the
policies cover notification costs, credit monitoring, costs to
defend claims from state regulators, fines and penalties,
and coverage for the cost of restoring and recreating
breached data. Many Cyber policies now also include
coverage for cyber extortion which has become a common
occurrence.

A teacher clicks on a malicious link in an email and malware
is downloaded onto the school server, encrypting all
information. The school is no longer able to access any
student or staff information. Hackers demand a ransom and
threaten to release the personal information of students and
staff.

The carrier responds and provides an information technology
consultant to assess system backup capabilities and
complete a forensic investigation to locate and remediate the
malware. The carrier pays for all costs associated with
replacing the corrupted data and/or associated with
addressing extortion threats to release any information. In
the event that student or employee personal information is
released, the carrier will pay for defense and settlement costs.

Mark Muscatiello, Managing Director/Leader
Email: markm@ffbinsurance.com
Office: (212) 933-9050
Direct: (646)-265-0662

Kelly Machu, Executive Vice President
Email: kmachu@ffbinsurance.com
Office: (212) 933-9050
Direct: (732) 865-3285