A group of hackers released the email addresses associated with accounts on an extramarital affairs dating website. The AshleyMadison.com hack has gained a lot of publicity, not only because the type of service the dating site offers but also because the long list of celebrities and politicians who were members of the site.
What does this have to do with insurance?
There have been and will continue to be a number of lawsuits against AshleyMadison.com and having the right coverage in this situation is crucial. Cyber Liability Insurance has become a fast growing market, especially because of the large number of Internet based businesses that store their clients personal and private information.
What does Cyber Liability Insurance cover?
Most notably, but not exclusively, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network. The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft.
In addition, the policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion.
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