The consequences of a data breach can be far-reaching. While the initial issues in the wake of a breach often involve investigation into the cause of the breach and sending notification to those affected (both of which are covered by most cyber insurance policies), coverage for certain types of third-party claims stemming from cyber breaches may be available under Commercial General Liability (CGL) insurance policies.

CGL insurance policies provide coverage for claims of “Bodily Injury,” “Property Damage,” and “Personal and Advertising Injury.” Bodily Injury and Property Damage claims are covered under Coverage A of CGL policies, while Personal and Advertising Injury claims are covered under Coverage B. This blog post briefly summarizes the major issues policyholders encounter when seeking coverage for Personal and Advertising Injury (Coverage B) under CGL policies that arise out of a cyber incident.