This involves the incident response expenses of an investigation by third parties to establish the extent of the breach; consultation on how to manage legal and regulatory issues; notification management via a crisis communication strategy; the establishment of a call center to field queries; and the provision of credit monitoring.

This covers defence costs arising from data protection obligations in respect of a regulatory investigation, and any data protection fines (where insurable by law) that the company is legally liable to pay in respect of such regulatory investigation with regards to a breach of data protection legislation.

This tends to impact some months later. Affected individuals or businesses will bring claims or written demands for a failure to protect their information, seek compensation for financial losses from hacking, or damages from theft of identity. Cyber Insurance can provide defence costs and any resulting damages from multi-jurisdictional claims.

This takes into account the increased operational costs and reduction in profits as a result of a cyber event. This is known as non-physical damage business interruption, which is excluded from property insurance.

If an organsiation is answerable to the Payment Card Industry Data Security Standards (PCI DSS) then there are heavy penalties in the event of a breach. These costs can be covered by this extension to coverage.

Should a third party service provider suffer a cyber event that impacts the businesses networks, systems or data then this extension can provide invaluable protection for resulting costs, expenses and lost profits.

It is not just Cyber Security events that can be covered by Cyber Insurance, it is also possible to have a System Failure which can result in significant costs and expenses to rectify, claims from customers, loss of profits as well as reputation.

Extortion events are increasing exponentially, with the rise of data ransoming and cyber squatting, costs in managing a cyber-extortion situation, and the ransom itself is a critical element of cyber insurance.

Damages and defence costs incurred in connection with a breach of third party intellectual property, or negligence in connection with electronic content is a coverage which Cyber Insurance provides.

Cyber insurance typically covers business interruption loss upto the point of system restoration, however a reputation impact can last for many months longer, this covers the lost income during the reputation period.

First time buyers of cyber insurance need to consider buying an extended discovery period, as often hackers can be inside a network without knowledge and this may not be covered unless specifically extended.

Costs to seek information and obtain the identity and whereabouts of the persons responsible for causing loss, including hacker bounties to buy more time or extend hacker ransom demands or deadlines.