Cyber Liability Insurance Update

In January this year Advisor Armor added an independent, nationally licensed service to evaluate cyber risks and write suitable and customized insurance policies. We are pleased to have successfully done so now for over 100 of our clients. We mention this now as many may be entering insurance renewal periods, lack any coverage at all, or simply don’t understand the policy provisions in place.

If you wish to discuss any of the above please use this calendar LINK to arrange a call. It would also be helpful to complete this quick underwriting assessment.

To start evaluating your risk there are many calculators available online but we like this one below. As you may recall - PCI (Credit Cards), PHI (Health Information) and PII (Personally Identifiable information)

Below, please find policy provision element definitions you may find helpful in your evaluations.

Thank you


Cyber liability insuring agreements cover costs associated with the liability of a third-party claim or suit related to a breach and includes:

Network & Information Security Liability

Coverage for claims arising from unauthorized access to data, failure to provide notification of a data breach where required by law, transmission of computer virus or failure to provide authorized users with access to the company website.

Communications & Media Liability

Coverage for claims arising from copyright infringement, plagiarism, defamation, libel and slander in
electronic content.

Regulatory Defense Expenses

Coverage for governmental claims made as a result of network and information security liability or communications and media liability.


First-party insuring agreements cover such things as the material costs of a breach, including forensic analysis, fees to determine the nature and extent of the breach, as well as notification costs that are legally mandated in 47 states and include:

Security Breach Remediation & Notification Expenses

Coverage for costs associated with notification of individuals breached, credit monitoring, fraud expense reimbursement and call center. Optional per person notification available.

Computer Program & Electronic Data Restoration Expenses

Coverage for expenses to restore data lost from system damage due to computer virus or unauthorized access.

Crisis Management Event Expenses

Coverage for public relations services to mitigate negative publicity.

Computer Fraud

Coverage for loss of money, securities or other property due to unauthorized system access.

Funds Transfer Fraud

Coverage for loss of money or securities due to fraudulent transfer instructions to a financial institution.

E-commerce Extortion

Coverage for money paid as a result of threats made to fraudulently transfer funds, destroy data, introduce a virus, attack a system or disclose electronic customer information.

Business Interruption & Expenses

Coverage for loss of income and expenses to restore operations as a result of a computer system disruption caused by a virus or unauthorized computer attack.


Crime and fidelity insurance covers losses that result from theft, fraud or deception. Because the underlying cause of a loss in some cyber-related claims is fraud, a company would claim a loss under its crime policy rather than its cyber policy.

Social Engineering Fraud

Coverage for claims arising from deceptively gaining the confidence of an employee to induce him or her to part with money or securities. A fraud scheme by someone who is posing as a trusted vendor, new client or employee may cost a company hundreds of thousands of dollars or more.