Cyber Crime and Cyber Terrorism

WHAT IS CYBER LIABILITY?
As we have seen, historically it was considered prudent to protect the physical as-
sets of a business through insurance (BI Insurance) and later, claims for damage 
due to error or negligence (PI Insurance). But as the world becomes ever more in-
terconnected and our dependency upon technology increases, the threat of unau-
thorized access or loss of personal information has resulted in the need to protect 
against previously uninsurable risks. So the Insurance market responded by creating 
the “Cyber Liability Insurance” (CL Insurance) product. CL Insurance is intended 
to cover risks associated with data breaches, which according to the Privacy and 

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What is cyber liability?
Electronic Communications Regulations (2011), include the 
“accidental or unlawful 
destruction, loss, alteration, unauthorized disclosure of, or access to, personal data 
transmitted, stored or otherwise processed.”
Although CL Insurance is relatively new the products are developing quickly 
as businesses and Insurance companies alike recognize the growing risks associ-
ated with operating in cyberspace. This growth is being driven by a number of fac-
tors including the speed and growth of the use of the Internet and our dependency 
upon technology. In 2013 the network company CISCO wrote a paper entitled “The 
Internet of Everything for Cities” which discussed 
“Connecting People, Process, 
Data, and Things to improve the ‘Livability’ of Cities and Communities
.
”
In this pa-
per it states how the “Internet of Things” (IoT), interconnected systems will become 
the 
“Internet of Everything (IoE) a network of networks where billions or even tril-
lions of connections create unprecedented opportunities as well as new risks.”
As we 
enter this era of the “Internet of Everything” several things become apparent:
• The world becomes more interconnected;
• the underlying infrastructure becomes more complex;
• the average user craves simplicity and “ease of use”
This means that
• We do not need to understand how the technology works to use it
• Information becomes easier to share between people and organizations
• Information is more likely to be retained for longer (disk storage is cheaper than 
ever)
• Information is more likely to exist on multiple devices (it no longer sits in 
secure computer rooms)
• Information can be sent to thousands of people with the click of a button
• We can communicate (using Social media) with thousands of people
• We can remain anonymous or create new identities behind which to hide
• We can connect to like-minded people around the world
As our reliance upon technology and information increases organizations are be-
ginning to recognize their exposure is increasing, driven largely by high-profile cy-
ber-related breaches and increased regulatory scrutiny and legislative requirements. 
As awareness increases, organizations are realizing that cyber risks are not solely 
concerned with the loss or unauthorized disclosure of personal data or information. 
Although there are a wide range of cyber risks, including those associated with busi-
ness interruption and denial of service there are in fact just two forms of CL Insurance 
available (although these are not mutually exclusive as one can impact the other):