Does Cyber Insurance Cover Intellectual Property Theft?

Theft of source code, designs, customer lists, or trade secrets can involve system intrusion, data restoration expense, business interruption, or a claim by another party. FTC guidance describes first-party recovery and certain third-party claims, but does not say that cyber insurance pays the commercial value of stolen intellectual property. Some products combine cyber with media or other liability, which can have different covered harms.

Check whether the policy covers investigation and restoration after unauthorized access, and distinguish those expenses from lost IP value, lost profits, or ownership disputes. Review exclusions for intellectual property, trade secrets, infringement, and contractual obligations, plus any sublimit or media-liability section. If the concern is your own IP’s value or another party’s infringement claim, ask whether a separate specialty policy is relevant.