What Insurance Covers Privacy Lawsuits?
Cyber or privacy liability may cover certain claims over exposed or mishandled personal information; defense, response costs, regulatory matters, and fines can have separate terms.
A lawsuit or regulator inquiry after a privacy incident may trigger a policy’s third-party privacy-liability section. FTC guidance describes cyber coverage that may address claims, legal proceedings, settlements, and regulatory inquiries; an AIG specimen uses a claims-made-and-reported Security and Privacy Liability section.
Ask whether the policy covers class actions, vendor incidents, notification costs, and regulatory proceedings. Check each limit and whether statutory fines are insurable; response costs and liability claims may sit in different sections.
