What is Cyber Liability?

Cyber Liability Insurance can address a variety of risks related to the use of computers, internet, computer networks, and electronic information databases. A primary concern for most organizations is the threat of a data breach -- a security incident in which sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. Data breaches may involve financial information such as credit card or bank details, personal health information (PHI), Personally Identifiable Information (PII), internal communications, trade secrets of corporations or intellectual property.

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Cyber Liability Insurance Facts

  • What creates cyber risk?

  • Cyber Liability Insurance Coverage

  • Cyber Loss Examples

  • Cyber Liability Insurance Solutions

 

What creates cyber risk?

  • Internet connectivity

  • e-Commerce

  • Business websites and internet advertising

  • Customer forums and support/message boards

  • Credit card processing/online payment

  • Data storage, ISP, website design

  • Providing media content

  • Paper documents

 

Cyber Liability Insurance Coverage

  • Network Security & Privacy Liability - damages resulting from alleged violations of HIPAA and other privacy protection laws/regulations (state, federal or foreign), offering broad definitions of Personally Identifiable Information (PII) and Protected Health Information (PHI)

  • Security Event Costs - customer notification, fines/penalties, public relations expenses

  • Employee Privacy Liability - legal liability for breach of employees' PII or PHI

  • Electronic Media Liability - infringement of domain name, copyright, trade name, slogan, or service mark on the insured's website

  • Loss of Digital Assets - damage to or corruption of the insured's electronic data

  • Non-Physical Business Information - income reimbursement during period of restoration

  • Cyber Extortion threats and Cyber Terrorism

 

Cyber Loss Examples

  • Unauthorized Access: An international computer hacking group gained access electronically to the computerized cash registers of a restaurant chain and stole credit card information of 5,000 customers, starting a flood of fraudulent purchases around the world.

  • Human Error: An employee of a private high school mistakenly distributed via e-mail the names, social security numbers, birthdates and medical information of students and faculty creating a privacy breach. Overall, 1,250 individuals' information was compromised.

  • Security Event Costs: A regional retailer contracted with a third party service provider. A burglar stole two laptops from the service provider containing the data of over 800,000 clients of the retailer. Under applicable notification laws, the retailer - not the service provider - was required to notify affected individuals. total expenses incurred for notification and crisis management to customers was nearly $5,000,000.

 

Cyber Liability Insurance Solutions

  • Policy limits up to $20M available for select risks

  • Target Classes: Professional Services, Religious Organizations, Private Schools, Insurance Agents, Non-profits, Hospitality, Retail, Manufacturers, Healthcare, and many more


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Most notably, but not exclusively, cyber and privacy policies cover a business's liability for a data breach in which the firm's customers' personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm's electronic network.


 

CYBER SECURITY LIABILITY KEY FEATURES • Limits available up to $20 Million for select risks

 

Cyber Security Liability program provides both First and Third Party coverage for numerous classes of business. Through eight Insuring Agreements, a wide range of cyber liability exposures are addressed. Coverage is available nationwide on either an admitted or non-admitted basis.

  • Includes coverage for legal fees and computer forensic costs in the event of a security or privacy breach

  • Regulatory fines and penalties included under Security Event Costs and PCI assessment coverage available by endorsement

  • Customer Notification Expenses include legal expenses, credit monitoring, postage and advertising

  • Comprehensive interruption expenses coverage, including income loss

  • Coverage for Damages to third parties caused by a breach of network security

  • Definition of claim includes a demand for monetary and nonmonetary damages

First Party Protection

  • Loss of Digital Assets Coverage

  • Non-Physical Business Interruption and Extra Expense

  • Cyber Extortion

  • Cyber Terrorism

  • Security Event Costs

Third Party Protection

  • Network Security and Privacy Liability

  • Employee Privacy Liability

  • Electronic Media Liability

?Get a Quote Call Toll Free: 1-888-254-0089