Few corporate risks are as amorphous as cyber liability, and few insurance products are as complex as cyber insurance. Small wonder why so many different insurance policies present a modicum of cyber coverage, but none offer comprehensive protection.
The problem can be traced to the word “cyber,” so broad that it encompasses a multitude of financial exposures, from denial of service attacks to computer viruses to a cup of coffee destroying a laptop. Other cyber risks include stolen or corrupted digital information, Internet-based libel and slander, and even such extraordinary hazards as an office building’s computer-operated HVAC system shut down by a hacker.
Making the decision to buy cyber liability insurance recently is Concordia University in Montreal, which tallies more than 7,000 employees and 45,000 students, all potentially vulnerable to identity theft. “We have private, personal information on every single student and employee, including bank account numbers in some cases,” said Jean-Francois Baril, the university’s corporate risk manager.