Does Tech E&O Cover Cybersecurity?

“Cybersecurity” can mean a client claim that your security service failed, a privacy lawsuit after a breach, or your own response costs. The Hartford lists security liability and data privacy/network security liability among features of its FailSafe technology product. The NAIC describes cyber policies as potentially covering breach response, data restoration, business interruption, and third-party claims. These features vary by form. Check whether professional security consulting is scheduled, whether a defined security failure must trigger coverage, and whether regulatory proceedings, notification costs, ransomware, and vendor incidents are covered. Review sublimits, waiting periods, minimum security controls, exclusions, and which policy is primary when a claim alleges both negligent services and a cyber event.

A security consultant should describe both advice and operational access to client systems. Confirm whether the form covers alleged failure to prevent an incident or only listed technology services.