Safeonline Insurance Glossary – What is…


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Someone who acts for another person (the principal) usually for reward. There are four main classes of agent that may be involved in the underwriting of insurance and reinsurance risks by Lloyd’s underwriters: members’ agents, managing agents, brokers and coverholders.


Total (limit of indemnity, premium, retention etc).


Big data

Extremely large data sets that can be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions.


A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.


A blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.


From the term web log, a type of website, usually in reverse chronological order, maintained by an individual with regular entries.


  • The successful defeat of security, which could result in system penetration.
  • Violation of a system’s controls that exposes information assets or system components.

Breach Response

The services provided by a chosen specialist to assist an insured during a data breach or cyber related crisis and can provide services such as expert forensic, legal, notification and credit monitoring services.


At Lloyd’s, brokers act as the agent of the insured or reinsured to arrange insurance or reinsurance with Lloyd’s syndicates.

Business Income

Any income realised as a result of business activity.

Business Interruption Insurance

Type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.



A claim is payable under an insurance or reinsurance contract if it is caused by an insured peril and it is not excluded under the terms of that contract.


Where shared resources are stored and accessed, usually online instead of locally.

Collaborative Consumption

Can be defined as the set of resource circulation systems, which enable consumers to both “obtain” and “provide”, temporarily or permanently, valuable resources or services through direct interaction with other consumers or through a mediator.

Computer Fraud

An act using computers and the Internet to defraud people, companies, or government agencies of money, revenue or internet access


A class of malware designed specifically to automate cybercrime. It is distinguished from adware, spyware and malware because it is designed to perpetuate identity theft in order to illegally access and use another’s online accounts

Crisis Management plan

The communications and decision-making component of an overall Business Continuity Plan (BCP). A thorough Crisis Management Plan facilitates rapid communication to ensure overall safety to both internal and external stakeholders


Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture


Digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.

Cyber Insurance

Cyber insurance covers the losses relating to damage to, or loss of information from, IT systems and networks. Policies generally include significant assistance with and management of the incident itself, which can be essential when faced with reputational damage or regulatory enforcement

Cyber Liability Insurance

Third-party coverage for liability arising from the failure of an insured to prevent unauthorized use or access of it its network, transmission of a computer virus to a third party, theft of confidential information, or denial-of-service. In the digital age, all businesses should consider purchasing some form of cyber insurance to protect themselves.

Cyber Property Damage

Damage to property caused by a security breach such causing a power station to shut down

Cyber Terrorism

Using the internet to commit terrorist acts that cause fear or panic


An attack on the technology used by an individual or organisation, using technical and social engineering techniques to gain unauthorised access to data and systems


Cybercrime is defined as a crime in which a computer is the object of the crime such as hacking, phishing, spamming or is used as a tool to commit an offense. Cybercriminals may use computer technology to access personal information, business trade secrets, or use the internet for exploitive or malicious purposes


Cyberextortion is a crime involving an attack or threat of attack coupled with a demand for money to avert or stop the attack. Cyberextortion can take many forms including denial of service attacks against corporate websites or demanding that money be wired to a bank account

Cyberextortion event

Any incident in the form of a threat or connected series of threats to commit an intentional computer attack against an insured



Machine readable information held, stored or processed on a network

Data Breach

Intentional or unintentional release of confidential information to an untrusted source or environment.


Term for libel and slander and is based around statements that damage the reputation of others.

Denial of Service

Action preventing an information system from functioning in accordance with its intended purpose such as flooding a system to prevent it from servicing normal and legitimate requests. Denial of Service attacks make computer resources unavailable to users.

Digital Assets

A term used to describe data and programs that exist in a network and come with the right to use.



Conversion of data into a form called ciphertext that cannot be easily understood by unauthorized users. To recover the contents of an encrypted signal, the correct decryption key is required.

Errors & Omissions (E&O) Insurance

Liability insurance that protects professionals from claims of negligence indemnifying them for the cost of defending the claims.



The term coined to describe the intersection between finance and technology. It may refer to technical innovation being applied in a traditional financial services context or it may refer to innovative financial services offerings which disrupt the existing financial services market.

First Party Costs

The costs involved to restore re-collect or replace the data including expenses for materials, rented or leased equipment, third party services, additional working time and overhead cost allocations at the affected location(s) associated with restoring and replacing the data.


General Data Protection Regulation

Is a regulation by which the European Parliament, the European Council and the European Commission intend to strengthen and unify data protection for individuals within the European Union (EU). Potential fines of 4% of global annual turnover, or €20,000,000 if companies fail to comply.

Gig Economy

Labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

GLBA (Graham-Leach-Bliley Act)

Included within GLBA are multiple sections relating to the privacy of financial information. Companies must provide written notice to consumers of their privacy rights and explain the company’s procedures for safeguarding data.



An event, typically lasting several days, in which a large number of people meet to engage in collaborative computer programming.


Persons who use computer skills to trespass, uninvited, into another’s computer system and compromises computer security or gaining unauthorized access to a computer file or system.


Information Security Liability

The liability that results from a breach of an electronic network


Contract between two parties whereby one party agrees to indemnify the other in the event of a specified peril

Intangible Assets

An asset that is not physical in nature such as patents, trademarks, copyrights and business plans. Brand recognition and reputation could also be viewed as an intangible asset.

Intellectual Property (IP) Insurance

Covers areas such as patent infringement liability, contractual indemnities, pursuit of infringers and loss of IP rights. Businesses that rely on IP to derive value should consider this insurance to defend against or pursue a competitor.


A global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols.

Internet of Things (IoT)

Refers to networks of objects that communicate with one another and with computers through the Internet. ‘Things’ may include virtually any object for which remote communication, data collection, or control might be useful.


A local or restricted communications network, especially a private network created using World Wide Web software.


Legal Expenses

Type of insurance which covers policyholders against the potential costs of legal action brought by or against the policyholder


Malicious Code

Any unauthorized, corrupting, or harmful virus, Trojan Horse, worm, logic bomb or other similar software program, code or script designed to insert itself onto a computer disk or into computer memory and migrate from one computer to another.


Software intended to infiltrate and damage computers (abbreviation of malicious software).

Media Liability Insurance

Type of liability insurance designed for a range of media related firms such as publishers and broadcasters. Policies can be written on a named perils basis and cover areas such as defamation, invasion of privacy, infringement and plagiarisim.



The science of manipulating materials on an atomic or molecular scale to build microscopic devices


The hardware and/or software making up a data communications system.

Network Breach

  • the alleged or actual unauthorized access to a computer system that results in:
  • the destruction, deletion or corruption of electronic data on a computer system; a data breach from a computer system; and denial of service attacks against Internet sites or computers; and
  • transmission of malicious code from a computer system to third party computers and systems

Notification Expenses

(See Privacy Notification Costs)


Online Banking

A method of banking in which transactions are conducted electronically over the Internet.


P2P Lending

The practice of lending money to individuals or businesses through online services that match lenders directly with borrowers.

Payment Gateway

Merchant service provided by an e-commerce application service provider that authorizes credit card or direct payment processing.

PCIDSS (Payment Card Industry Data Security System) –

A set of policies and standards for securing credit and debit cards information.


Denoting or relating to networks in which each computer can act as a server for the others, allowing shared access to files and peripherals without the need for a central server.


Any information that can be used to distinguish one person from another and can be used for de-anonymizing anonymous data can be considered PII.

Point of Sale System

A system mostly used in restaurants and hotels in which a computer replaces a cash register accepting credit and debit card data

Privacy Breach

The unauthorised access, acquisition or use of PII resulting from a network security breach

Privacy Liability

Incurred by a company when its computer system is breached by a third party or past, or present employee, personally identifiable information is released to unauthorized persons.

Privacy Notification Costs

  • costs to hire a security expert to determine the existence and cause of any theft or unauthorized access to or disclosure of personally identifiable information,
  • costs to notify consumers under a breach notification law
  • fees incurred to determine the actions necessary to comply with a breach notification law



A form of malware in which an unauthorized user inserts a computer virus to encrypt data and then demands money for the decryption key to restore the data.


The data of a natural person including name, social security number, driving license number, credit card number, employment records and/or medical records.

Regulatory Fine

Civil fine or civil monetary penalty imposed in a regulatory proceeding payable by the Insured to the government entity bringing such regulatory proceeding in such entity’s regulatory or official capacity

Reputational Damage/Harm Coverage

Insurance coverage for the reduction in business income from the loss of customers caused by a damaged reputation from a network security breach


Online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners



Software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted

Section 230

Landmark piece of Internet legislation in the United States which provides immunity from liability for providers and users of an interactive computer service who publish information provided by others

Sharing Economy

Economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet


Posting something false and damaging to someone’s reputation

Smart Contracts

Computer protocols that facilitate, verify, or enforce the performance of a contract, or that make a contractual clause unnecessary.

Social Engineering

Social engineering is an attack vector that relies heavily on human interaction and often involves tricking people into breaking normal security procedures

Social Networking Websites

Online services that bring people together by organizing them around a common interest and providing an interactive environment of photos, user profiles and messaging

System Damage

Damage to computer programs or other data caused by a network security breach.


Tangible Assets

An asset that has a physical form such as buildings or land

Technology Liability

The failure of the insured to provide the technology services set out to a client or third party resulting in negligence.

Third Party Liability

Insurance coverage for claims made against an Insured by a party not involved in the insurance contract such as a member of the public

Time Retention

In an insurance policy time retention means the number of hours that must have passed before recovery of business income can be claimed


A program containing additional, hidden code that causes it to launch unauthorized functions, including possible data destruction.

Two-factor authentication

Obtaining evidence of identity by two independent means, eg knowing a password and receiving a pass code via a mobile phone.



Disruption of a market or economic model by using technology to introduce more efficient alternatives


A person employed to make decisions on whether to take on risk on behalf of an Insurer



A piece of code loaded onto a computer without the user’s knowledge, capable of copying itself and causing damage or disruption.


A blog in which the postings are primarily in video form


A video blogger