Does cyber insurance cover a customer’s losses when our productivity app goes down?

FTC describes third-party cyber coverage as potentially addressing claims by others and first-party coverage as potentially addressing the insured business’s own costs. The examples do not establish that a service outage or customer contract claim is covered.

Before comparing forms, separate an outage at your cloud provider from an error in your own app. Ask how each scenario's cause, affected system, customer claim and service-credit terms fit the quoted definitions, waiting periods and exclusions.^1,⁶

Read the Productivity Software Insurance Buying Guide

Sources and Further Reading for Productivity Software

1
Cybersecurity for Small Business — Federal Trade Commission. Supplier risk, response planning and cyber-insurance buyer questions. Educational guidance, not policy wording.FTC small-business guidance on supplier risks and cyber-insurance review questions.
2
Cyber Insurance — Federal Trade Commission (content developed with NAIC and federal partners). First-party coverage, lines 46–77; third-party coverage, lines 78–102. Examples are not a promise for any policy.FTC first-party and third-party cyber examples, explicitly subject to policy terms.
3
Small Business Insurance — National Association of Insurance Commissioners. BOP and exclusions; general liability and exclusions; professional liability, crime and cyber; business property. General educational descriptions, not policy terms.
4
Business Interruption and Business Owner Policy — National Association of Insurance Commissioners. Business interruption and contingent business interruption; covered physical damage and dependent-business trigger qualifications.
5
Cyber Insurance Coverage and Products — Chubb. DigiTech Enterprise Risk Management product description; Chubb’s named product summary describes technology E&O for third-party financial injury arising from insured products and services. Product-specific summary, not a universal definition or buyer policy form.
6
Technology Exposures — Chubb. Information loss, network-security failure, interruption, vendor incidents and technology-service errors; exposure examples, not a coverage determination.Chubb exposure scenarios for technology-service, vendor and network risks; exposure guidance only.
7
Commercial Insurance Guide — California Department of Insurance. Revised June 14, 2024; commercial property, inland marine, boiler and machinery/equipment breakdown, commercial general liability, commercial auto, umbrella, and workers compensation. California-focused guidance; confirm other jurisdictions and actual policy wording.

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