Glossary

Cyber-security technology, in an insurance context, is technology used to reduce cyber risk. It is divided into two tiers. Tier 1 includes security technologies required as the basis for a secure infrastructure, such as the following. Firewall Desktop antivirus tool Secure Web gateways Messaging security Intrusion detection/prevention systems Encryption Security information event management Tier 2 security technologies, such as those listed below, have the capability of identifying abnormal behavior in transit and on the host. They are typically purchased after a major breach occurs. But in advance of such a loss, the more knowledgeable corporations invest in these advanced technologies that go beyond traditional pattern matching and signatures for known attacks. They have the capability of identifying abnormal behavior in transit and on the host. Network forensics Desktop forensics Data leakage protection Behavior-based analysis Security intelligence feeds

Cyber-space liability describes the liability exposures encountered when communicating or conducting business online. Potential liabilities include the Internet and email. Online communication tools could result in claims alleging breaches of privacy rights, infringement or misappropriation of intellectual property, employment discrimination, violations of obscenity laws, the spreading of computer viruses, and defamation. Media liability policies are available to cover these exposures.

Cyber and privacy insurance is a type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network. Most notably, but not exclusively, cyber and privacy policies cover a business's liability for a data breach in which the firm's customers' personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm's electronic network. The policies cover a variety of expenses associated with data breaches, including notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft. In addition, the policies cover liability arising from website media content, as well as property exposures from (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion. Cyber and privacy insurance is often confused with technology errors and omissions (tech E&O) insurance. In contrast to cyber and privacy insurance, tech E&O coverage is intended to protect providers of technology products and services, such as computer software and hardware manufacturers, website designers, and firms that store corporate data on an off-site basis. Nevertheless, tech E&O insurance policies do contain a number of the same insuring agreements as cyber and privacy policies.

Cyber bullying is a form of bullying using electronic media and going beyond the "traditional" face-to-face interactions. The prevalence of instant messaging, social media, and other forms of technological communication has driven the increase in incidents of this type. Employment practices liability insurance (EPLI) policy wording may explicitly include coverage for "bullying" in "any location" and "by any means," including the Internet. Particularly broad provisions of this type not only grant coverage for cyber bullying in general, but also specifically allow coverage even if the act is effected off company premises, outside of "regular" work hours, and on a device not owned or provided by an employer. Wording to this effect is by no means a guarantee in the EPLI marketplace.

Cyber extortion is a type of online crime in which a criminal threatens to damage or shut down a company's website, email server, or computer system or threatens to expose electronic data or information belonging to the company unless the company pays the criminal a specific ransom amount.

Contract frustration insurance is a form of trade insurance that compensates insureds for losses they incur when actions of a foreign government or conditions in a foreign country prevent fulfillment of a contract. Among the types of events insured under a typical contract frustration policy are the following. Unilateral termination of a contract by a government entity Nonpayment by a government entity after a contract is fulfilled Cancellation of a legally valid import or export license Government default on an award following arbitration of a contract dispute Other governmental acts that frustrate the fulfillment of contracts Regarding coverage related to contracts, typically the amount covered must be specified in the insured contract, and the policyholder must have fulfilled its obligations under the contract.

Creeping expropriation refers to measures designed to pressure a foreign investor to sell its investment to locals, often at less than its actual value. Methods for doing this include discriminatory taxation, elimination of previous tax benefits, requirements to hire locals and pay high wages, and restrictions on prices. For claims of creeping expropriation, it is critical to be able to establish the date a loss occurred or commenced.

Currency inconvertibility refers to measures a host government or financial authority takes to prevent a foreign investor from converting its earnings from the local currency, thus preventing the investor from repatriating its earnings. Coverage generally does not extend to currency devaluations, which are generally regarded as a business risk retained by an owner-investor.

In professional liability claims, expert testimony is often needed to assist the jury in assessing whether the defendant's professional performance or conduct conformed to the standard of care for that professional and the particular activity involved. The expert opines on whether the professional was in breach of that duty and whether that was the proximate cause of the claimed damages. The common knowledge exception is a rule that allows a layperson, not an expert, to testify as to whether the defendant's professional standard of care was breached, dispensing with the need for expert testimony. This exception is limited and may not apply in all cases or states.

The Compacts, Access, and Responsible Expansion (CARE) Act was introduced in 2021–2022, aiming to reform medical licensure to expand interstate access to mental health resources. Although needed to ensure a better supply of available mental health providers, the legislation stalled in Congress.