What does Regulatory Defense and Penalties Coverage mean? Read on to discover the definition & meaning of the term Regulatory Defense and Penalties Coverage - to help you better understand the language used in insurance policies.
Regulatory Defense and Penalties Coverage
An insuring agreement contained within policies written to cover claims caused by data breaches. Such policies are most often termed "cyber and privacy insurance," "information security and privacy insurance," or "cybersecurity insurance." This insuring agreement covers the costs of dealing with state and federal regulatory agencies (which oversee data breach laws and regulations), including (1) the costs of hiring attorneys to consult with regulators during investigations and (2) the payment of regulatory fines and penalties that are levied against the insured (as a result of the breach).
We hope the you have a better understanding of the meaning of Regulatory Defense and Penalties Coverage.