Cyber and privacy insurance policies cover a broad array of liability and property losses that occur when an organization engages in electronic activities. This can include selling a product or service online or collecting data within an internal electronic network.
Cyber and privacy insurance policies also cover any liabilities that result from website media content, as well as property exposures from business interruption, data loss/destruction, computer fraud, funds transfer loss, and cyber extortion.
One common area of confusion is the difference between cyber and privacy insurance and technology errors and omissions (tech E&O) insurance. These two essential policies have the following fundamental difference: Tech E&O coverage is designed to protect providers of technology products and services (computer software and hardware manufacturers, website designers, firms that store corporate data on an off-site basis, etc.), while cyber and privacy insurance policies are not industry-specific.