Frequently Asked Questions


We field a lot of questions from interested clients because Cyber Insurance is a relatively new product. Here are the questions we are asked most often.


1. What types of security breaches does Cyber Insurance cover?

Cyber insurance covers all data breaches of both electronic information AND paper documents containing sensitive information. Intentional breaches both externally (hackers) and internally  (rogue employees)  and accidental breaches both externally (breaches by vendors or sub-contractors) and internally (malware, lost electronic devices) are covered.

Additionally, any undiscovered breaches prior to the policy being in effect are covered. This is important because most breaches aren’t discovered for days, weeks, months, or even years after they have occurred.


2. Are just computer systems covered?

No, breaches that are caused by the inadvertent downloading of malware by mobile devices by employees are also covered. This is important because over 75% of smartphone apps fail a basic security test. Chances are, your employees have unsafe apps installed on their phones which can cause serious damage to your or your client’s data.


 3. Doesn’t my liability insurance cover cyber breaches?

While most liability insurance policies do have a cyber component, they only cover losses resulting from a 3rd party lawsuit. This means that none of your organization’s direct losses will be covered. First party losses include systems damage and/or replacement, investigation costs, loss of revenues due to business interruption, government fines and penalties, notification costs, crisis management (public relations), lawsuits originating from internal parties (like employees whose data has been compromised), credit monitoring costs, and extortion or ransom payments.


4. How does ECBM’s Cyber Policy differ from the competition?

ECBM’s cyber policy is backed by A+ Rated Lloyds of London and offers the following benefits:

  • It’s affordable. In some cases more than 50% less than it’s competition.
  • It’s offers the most comprehensive coverage on the market.
  • It does not contain unfair Exclusion Policies, such as the failure to encrypt data or the failure to maintain system updates and security patches.
  • It covers any size company in any industry.
  • It’s easy to apply for. Quotes are based on your company’s annual revenues.
  • It’s backed by ECBM’s on-site claims department and 40 years of experience. Unlike most brokers, ECBM has an extensive claims department that will act as your advocate in the event you do experience a breach. Based out of Philadelphia, our team will fight to get every dollar you deserve.


5. I am required by contract to carry Cyber Insurance. Is your policy easy to obtain?

Yes. Simply fill out our one-page application and we will have a quote to you within 48 hours. Once you are satisfied, we can bind coverage within 24 hours and send you a declarations page to prove coverage to your client.


6. What does Cyber Insurance cost?

While there is no definitive cost, the answer is that it is very affordable. Pricing is based on revenues, and certain industries have higher premiums based on their inherent risk. Pricing can be as low as $500 in premium for $1 million in limits for businesses making less than $1 million per year in revenues. Higher limits do not double the premium, so buying more coverage is a smart financial decision.


7. Does Cyber Insurance cover HIPAA breaches?

Yes. Cyber insurance covers all costs associated with a breach of Protected Health Information (PHI). It also covers government fines and penalties, which can total up to $1.5 Million per violation. One data breach can involve multiple violations, resulting in potentially astronomical fines.