This component offers coverage for third party claims alleging liability resulting from a security breach or privacy breach, including failure to safeguard electronic or non-electronic confidential information or failure to prevent virus attacks, denial of service attacks or the transmission of malicious code from an insured computer system to the computer system of a third party.



A jeweler completed the appraisal on a customer’s collection of diamond jewelry and had her store manager email it to the customer.  A few days later, the customer called and stated that she never received the completed appraisal, which alerted the store manager that the appraisal had been inadvertently sent to the wrong email address. The appraisal contained personally identifiable information (PII).

The customer filed a lawsuit against the jeweler for negligence and failure to safeguard confidential information.

Cyber liability insurance would cover defense costs and damages associated with the lawsuit.