Does Cyber Insurance Cover Insider Threats?

An insider threat involves someone with authorized access who misuses it, whether by taking information, sabotaging systems, or helping an outside attacker. Cyber liability wording may cover claims arising from a security or privacy failure while excluding some dishonest or intentional acts. In the AIG specimen, exclusions depend on who acted and what others knew; that illustrates why the precise wording matters and should not be generalized to other forms.

Check whether employees, contractors, and temporary workers count as insured persons, and whether the form preserves defense for innocent insureds. Read the dishonest-acts exclusion, any severability clause, and crime coverage for employee theft or computer fraud. Separate the response expense for a data incident from the value of money or property taken. Confirm reporting obligations and cooperate with the insurer’s investigation.