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.[2]
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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.
Updated 2026-09-28. Editorial Policy
Get Help With Insurance Buying and Renewals.
Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.
