This component offers coverage for reasonable and necessary amounts incurred to recover and/or replace electronic data that is compromised, damaged, lost, erased or corrupted due to:
1. accidental damage or destruction of electronic media or computer hardware,
2. administrative or operational mistakes in the handling of electronic data, or
3. computer crime/attacks including malicious code, denial of service attacks and acts of cyber terrorism.
Coverage also extends to business income loss and interruption expenses incurred because of a total or partial interruption of an insured computer system directly caused by any of the above events.
Dependent Business Interruption is an added enhancement to the network asset protection coverage component that covers a business’ loss of income and interruption expenses incurred as a result of a third party provider’s system going down.
A fitness club’s computer system was infected with a virus that caused the network to be down for two days. The virus also caused the loss of data stored on the computer system which included the database of the fitness club’s members.
The fitness club’s cyber insurance paid $22,000 for the costs to restore the system and lost data.