Translate terms into claim outcomes
Cyber terms matter because they decide which costs are paid, which sublimit applies, which procedures must be followed, and where another policy may need to coordinate. These definitions focus on practical buying and claim questions.
Ransomware
Malware or attacker activity that blocks access to systems or data until a demand is paid.
Data Breach
Unauthorized access, acquisition, or disclosure of sensitive information such as PII, PHI, payment data, or confidential client records.
Social Engineering
Manipulation of an employee into sending money, credentials, or sensitive information.
Business Email Compromise
A fraud scheme where attackers use email impersonation or mailbox access to redirect payments, invoices, or wire transfers.
Network Interruption
Lost income and extra expense when business systems are unavailable because of a covered cyber event.
Cyber Extortion
A threat to publish, destroy, encrypt, or misuse data unless money or another concession is provided.
First-Party Coverage
Cyber coverage for losses the insured business suffers directly.
Third-Party Coverage
Cyber liability coverage for claims by customers, vendors, partners, regulators, or others alleging harm from a privacy or security failure.
Claims-Made Policy
Coverage that responds when a claim is first made and reported during the policy period, subject to reporting rules and retroactive dates.
Retroactive Date
The date after which acts, incidents, or events must occur to be eligible for coverage under a claims-made policy.
Continuity Date
A date used in claims-made policies to evaluate prior knowledge, continuity of coverage, or related acts across renewals.
MFA
Multi-factor authentication, requiring a second verification factor beyond a password.
Defense Within Limits
A policy structure where legal defense costs reduce the available limit of insurance.
Hammer Clause
A settlement provision that can limit coverage if the insured refuses a carrier-recommended settlement.
Surplus Lines
Non-admitted insurance used when admitted markets cannot offer suitable terms, appetite, limits, or pricing.
Admitted vs Non-Admitted
Admitted carriers are licensed and regulated by the state; non-admitted markets provide surplus-lines options for harder-to-place risks.
Computer Fraud
Coverage for direct financial loss caused by unauthorized computer instructions or fraudulent system access.
Privacy Liability
Third-party coverage for claims or regulatory proceedings arising from privacy rights violations or data mishandling.
Waiting Period
The time that must pass before business interruption coverage begins.
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Use Cyber Insurance Glossary as a decision map, not just a directory
This hub is meant to help a buyer compare cyber insurance with context. Each coverage term page should answer what the exposure is, which coverage details matter, what underwriting information is needed, and where a proposal can look stronger than it really is because of sublimits, exclusions, or claim conditions.
The best cyber placement process starts broad, then gets specific. First identify the likely claim scenarios, then compare markets, limits, retentions, sublimits, and response resources. That makes the hub useful for both quick orientation and a deeper quote review.
Use the hub to decide which pages deserve a closer read before a quote is requested. The practical goal is simple: make sure the buyer understands exposure, market fit, and coverage tradeoffs before price becomes the only decision point.
Start with exposure
Identify data, systems, payment workflows, vendors, contract requirements, and downtime tolerance before comparing quotes.
Then compare terms
Review breach response, ransomware, restoration, business interruption, dependent systems, cybercrime, privacy liability, and regulatory defense.
Then choose markets
A fast quote is useful, but the final recommendation should also consider carrier appetite, claim resources, financial strength, state availability, and final forms.
What we document for Cyber Insurance Glossary
A complete cyber recommendation should leave a clean trail: why the limit was selected, which markets were compared, what controls affected eligibility, which sublimits were accepted, and what the insured should improve before renewal. That record matters because cyber claims are operational events, not just insurance paperwork.
We also separate what is known from what still needs underwriting confirmation. Carrier appetite, rating, issuing paper, state availability, subjectivities, taxes, fees, and final forms can change before binding. The buyer should understand those moving parts before treating any indication as final.