Does Cyber Insurance Cover Intellectual Property Theft?
Cyber insurance may cover response costs after an IP-related breach, but it may not reimburse the commercial value of stolen trade secrets or lost profits.
FTC guidance describes first-party recovery and certain third-party claims, but does not say that cyber insurance pays the commercial value of stolen intellectual property. Some products combine cyber with media or other liability, which can have different covered harms.
Check whether the policy covers investigation and restoration after unauthorized access, and distinguish those expenses from lost IP value, lost profits, or ownership disputes. Review exclusions for intellectual property, trade secrets, infringement, and contractual obligations, plus any sublimit or media-liability section. If the concern is your own IP’s value or another party’s infringement claim, ask whether a separate specialty policy is relevant.
Coverage Guides Related to Cyber Insurance
Which Providers List Coverage for Cyber Insurance?
Sources for Cyber Insurance Answers
- Cyber Insurance. Federal Trade Commission; What Should Your Cyber Insurance Policy Cover; First-Party Coverage; Third-Party Coverage. Accessed 2026-09-25.
- CyberEdge specimen policy. AIG; General Terms §§4–6, PDF pp.3–6; Security and Privacy §§1–3, PDF pp.11, 14–18; Event Management §§1–2, PDF pp.19–20. Accessed 2026-09-25.
- Cyber insurance coverage & products. Chubb; Cyber insurance coverage; First party coverage; Third-party liability coverage; Cyber crime (by endorsement); Products and services. Accessed 2026-09-25.
- Cyber insurance: a key part of a robust business strategy. Insurance Information Institute; What are the types of cyber insurance coverage?; What isn’t covered by cyber insurance?; Is cyber insurance affordable?; How much cybersecurity coverage do businesses need? Accessed 2026-09-25.