Does Cyber Insurance Cover Insider Threats?
Sometimes—cyber insurance may cover costs from an insider-caused data breach, but intentional misconduct and stolen-money losses may be excluded or handled under crime coverage.
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.
