Your Advocate in the Cyber Insurance Market™
Why Do I Need Cyber Insurance? Who’s On My Side in Getting Effective Coverage?
Liability for loss of customer or employee data, disclosure of trade secrets or trademark infringement, defamation of a business or person on the internet; business interruption from data breach or loss–none of these are typically covered under a corporate insurance policy. Some existing business insurance policies that offer general liability and directors’ and officers’ liability may provide a measure of coverage for those areas; however, most CEOs and Boards discover significant gaps between what is and what isn’t covered after an attack. Unfortunately, by then it’s too late. Cyber coverage is highly unstandardized: policies, capabilities and claims handling vary widely from carrier to carrier in the market. What the client needs is an effective advocate in the market to get coverage that fits his or her needs and budget.
Most important: on May 1, 2014, the Insurance Services Office changed its forms so that most standardized corporate policies will not cover Cyber Liability at all.
According to Verizon, 37% of breaches affected financial organizations, 24% affected retailers, restaurants and hospitality, 20% involved the manufacturing, transportation and utilities industries, with the same percentage affecting information and professional services firms. A FireEye analysis found universities, financial, high-tech and government to be the most popular target sectors for Cyber attack. And Verizon found that 38% of breaches struck firms with more than 1,000 employees,
while the remainder hit smaller businesses.
What Might I Want to Cover?
Data breach/privacy crisis management: For example, expenses related to the management of an incident, the investigation, the remediation, data subject notification, call management, credit checking for data subjects, legal costs, court attendance and regulatory fines.
Multimedia/Media liability: Third-party damages covered can include specific defacement of website and intellectual property rights infringement.
Extortion liability: Typically, losses due to a threat of extortion, professional fees related to dealing with the extortion.
Network security liability: Third-party damages as a result of denial of access, costs related to data on third-party suppliers and costs related to the theft of data on third-party systems.
Client Services:
For $50+ billion US agricultural bank: negotiating Cyber/Privacy/Media Liability coverage for data breaches, including crisis management/public relations, legal, notification, regulatory strategy and cost reimbursement.
For US multi-state accounting firm: negotiating Cyber/Privacy/Media Liability coverage. To include captive insurer (to be owned by the firm), multi-tier coverages, reinsurance placement and strategy.
For noted e-book/e-music provider: placed Cyber/Privacy/Media and Technology Professional Liability, including Run-Off (Extended Reporting Period) coverages.
(We collaborate with CRC Group, CharityFirst/Gallagher, and Lloyd’s for certain Cyber/Privacy/Media and other Commercial coverages).