A comprehensive cyber policy covering third-party liability arising from cyber incidents such as hacking, ransomware, DDoS and insider leaks, together with incident-response costs and business-interruption loss.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Cyber liability insurance covers a cyber incident affecting a company’s IT systems and data — comprehensively insuring both the resulting third-party liability and the company’s own incident response and recovery costs (First-Party Loss).
It responds to a wide range of cyber incidents — hacking, malware, ransomware, DDoS, phishing, insider leaks and human error.
Third-party liability (external claims) and the company’s own response costs (forensics, recovery, business-interruption loss) are covered under a single policy.
On notification, you are connected to cyber-forensic, legal and PR specialists for immediate response.
Cover for ransom payment, negotiation and recovery costs (subject to compliance with applicable sanctions law).
Cover for lost revenue and fixed costs during system downtime caused by a cyber incident.
Online malls, O2O and fintech that process large volumes of payment and personal data.
Sectors where OT/ICS connectivity means ransomware can halt production lines.
Sectors handling large volumes of sensitive data, where an incident brings high reputational and class-action risk.
| Policy period | 1 year (Claims-Made basis) |
|---|---|
| Payment | Single (annual) payment |
| Insurers | AIG · Chubb · DB · Meritz · Hyundai |
| Channel | Individual consultation with our broker (010-5755-6465) |
| Turnaround | 5–10 business days (security review) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Common risk patterns in digital operations — a five-scenario self-check
Online malls, O2O and fintech handle large volumes of payment and personal data, so a hacking or data-breach incident can cause large losses.
When ransomware halts production or logistics systems, the loss extends beyond data leakage to business-interruption loss.
For institutions handling sensitive data, an incident raises both reputational damage and class-action risk.
Cyber incidents — hacking, malware, DDoS, phishing, insider leaks — occur across every industry.
With a cyber incident, the forensic, legal and PR response in the first few hours determines the scale of the loss.
After a cyber incident a company often thinks of itself as “the victim,” but the actual loss arises in two directions. One is third-party liability for damage suffered by customers, business partners and others (3rd Party) — damages for personal-data breaches, regulatory-investigation and class-action defence costs, and so on. The other is loss the company bears directly (1st Party) — forensics and data-recovery costs, and business-interruption loss during downtime. Cyber liability insurance is typically designed to cover both risks under a single policy. Note too that even coverable items such as ransomware ransom come with conditions — for example compliance with applicable sanctions law — so the policy terms must be understood as well.
Source: (standard insurance-textbook scenario)
The wording and structure points decision-makers most often overlook
Cyber risk splits into third-party liability (3rd Party) and the company’s own recovery and business-interruption loss (1st Party). Check that the policy covers both.
Lost revenue and fixed costs during system downtime fall under business-interruption (BI) cover. Check the wording for when cover starts and on what basis it is calculated.
Ransom and negotiation costs can be covered, but conditions apply — such as compliance with applicable sanctions law. Confirm exactly whether and on what terms it is covered.
The questions asked most when considering cyber liability insurance
It responds to a wide range of cyber incidents affecting IT systems and data — hacking, malware, ransomware, DDoS, phishing, insider leaks and human error. It covers both third-party liability and the company’s own incident-response and recovery loss.
Third-party liability (3rd Party) is responsibility to outsiders — damages for personal-data breaches, regulatory-investigation and class-action defence costs. First-party loss (1st Party) is loss the company bears directly — forensics and recovery costs, business-interruption (BI) loss. Cyber liability insurance generally covers both areas together.
Lost revenue and fixed costs during downtime caused by a cyber incident fall under business-interruption (BI) cover. When cover starts and how it is calculated vary by wording, so this should be checked.
Ransom and negotiation costs can be covered, but conditions apply — such as compliance with applicable sanctions law. Confirm exactly whether and on what terms in the wording.
Cyber liability insurance covers cyber incidents broadly (hacking, ransomware, BI and more), while privacy / data-breach liability insurance is specialised in personal-data breaches and focused on meeting statutory duties. The two are often designed together.
The insurer calculates it based on industry, the volume and sensitivity of data processed, revenue, security level, the limit and cover structure, and past incident history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
