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.
What creates cyber risk?
Cyber Liability Insurance Coverage
Cyber Loss Examples
Cyber Liability Insurance Solutions
Business websites and internet advertising
Customer forums and support/message boards
Credit card processing/online payment
Data storage, ISP, website design
Providing media content
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
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.
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
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
Loss of Digital Assets Coverage
Non-Physical Business Interruption and Extra Expense
Security Event Costs
Network Security and Privacy Liability
Employee Privacy Liability
Electronic Media Liability