Cyber risk is a generic term that describes the risks faced by any individual or business that uses computers, networks, the Internet and email.
Cyber Risks fall into 5 Broad Categories:
- 3rd party liability
- 1st party damage
- Product or service failure
- Business interruption
Cyber Risk insurance is designed for the following sectors of the e-commerce and Internet world:
- e-Professionals – providing traditional professional services over the Internet
- Information Technology (Internet) Professionals – website developers, systems/computer consultants, etc
- E-commerce Companies – companies existing only on the net and “clicks & mortar” companies, and content providers such as portals, search engines and specialty providers of content
- Internet Advertisers (“Brochureware”) – traditional organizations utilizing the internet for marketing
Each of these sectors has a different set of exposures that can be cost effectively protected against with the right Cyber policy.