Identity Theft Liability Coverage Question
My insured accepts credit cards as payment. How do I get liability coverage for identity theft?
New York Subscriber
"Traditional" standard property and CGL insurance covering "tangible property" does not adequately address cyber risks such as you the one you described.
The type of liability policy you would want to look for will be called "e-commerce", "cyber liability" or "internet liability" or something in that same vein. These policies can usually be underwritten on either a "package" or a stand-alone basis, depending on the company's size. Stand-alone programs for larger risks are available on a modular or menu-driven framework and are generally tailored to the company's specific exposures. Cyber liability programs generally cover both first-party and third-party liability, including Errors and Omissions.
Keep in mind that coverage for security breaches and identity theft can vary considerably from one company's internet liability form to the next. Many provide no coverage or only partial coverage in their base forms for what is often referred to as unauthorized access, unauthorized use, and associated coverages. It is often recommended by cyber risk experts that a policy specifically state that it covers identity theft and/or credit card fraud or that the policy at least grants coverage for negligence generally in the performance of insured services and not contain any applicable exclusion.
This premium content is locked for FC&S Coverage Interpretation Subscribers
Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
- Quality content from industry experts with over 60 years insurance experience, combined
- Customizable alerts of changes in relevant policies and trends
- Search and navigate Q&As to find answers to your specific questions
- Filter by article, discussion, analysis and more to find the exact information you’re looking for
- Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected]