Insurance Coverage providing indemnification for corporations, including defense expenses and damages, arising out of the following:

• Loss caused by the fraudulent and malicious acts committed by either employees or third parties against the Insured's computer systems, electronic computer programs, electronic data & media
  
  
• Loss caused by computer virus attacks that hinder or shut down operations
  
  
• Extortion related to the implant of a computer virus, theft of information or disclosure of confidential data
  
  
• Business Interruption and Extra Expense as a result of computer virus or malicious destruction of the data inside a computer system.
  
  
• Liability for legal duties that are owed to the corporation's clients and other third parties as a result of the above.
  

This is a developing coverage and policy protections vary widely based upon the particular carrier or policy form utilized. Most policies are written on a claims made basis and utilize retentions and coinsurance. Each policy language contains coverage parts and exclusions particular to the individual form. As a result costs can also vary accordingly from carrier to carrier and based upon each clients particular exposure. The purchase of coverage is normally contingent upon completion of a Security Audit at the owners expense.