What Insurance Covers Privacy Lawsuits?

A lawsuit or regulator inquiry after a privacy incident may trigger a policy’s third-party privacy-liability section. FTC guidance describes cyber coverage that may address claims, legal proceedings, settlements, and regulatory inquiries; an AIG specimen uses a claims-made-and-reported Security and Privacy Liability section.

Ask whether the policy covers class actions, vendor incidents, notification costs, and regulatory proceedings. Check each limit and whether statutory fines are insurable; response costs and liability claims may sit in different sections.