Cyber insurance is a unique product which addresses the emerging coverage gaps in traditional insurance policies due to our increasing reliance on technology and use of data in daily business. Cyber insurance also presents a valuable risk management solution for many data and network risks by providing access to response teams with a clear focus on solving the wild variety of new cyber perils ranging from network outage, data loss/theft or even cyber extortion demands.
The Cyber Protection Package was designed with a clear focus on the risk management and cyber insurance needs of small and mid-size businesses. Our proposals are broken into three bundles; Breach Liability, Breach Rectification and Digital Crime.
Breach Liability – addresses various third-party cyber liabilities
- Privacy Liability: Addresses potential damages sustained by a third-party resulting from loss of
protected information. These damages could include emotional distress of individuals, financial
damage sustained by a business where the insured lost confidential corporate information
held under a non-disclosure agreement, financial damages sustained by a third party including
re-issuance of cards, password changes, etc.
Privacy liability also includes network security liability which contemplates liability arising
from the insured owning and operating a computer network. If the insured was unable to
prevent unauthorized access to their computer system which caused harm to a third party
(i.e. virus perpetuation) or if a hacker compromised the insured system to access another
network (i.e. the HVAC contractor being used to hack Target).
- Website Media Liability: Addresses personal/advertising and copyright/trademark infringement
exposures arising from content posted on the insured’s website or official social media presence
(i.e. Facebook, LinkedIn, YouTube, etc).
- Regulatory Proceeding: Addresses potential fines or penalties assessed by a governmental
regulatory agency resulting from a data breach.
- Payment Card Industry: Addresses penalties and assessments levied upon the insured by the
payment card industry (PCI) resulting from a data breach. These charges are assessed by the
PCI to address losses sustained by banks or merchants including card reissuance, chargebacks,
credits issued, etc.
Breach Rectification – addresses costs incurred by the insured to respond to a breach
- Data Breach Team: Covers the costs to respond to a data breach including a breach coach who
will coordinate the response, forensic expenses, notification expenses both to comply with data
regulations or voluntary as recommended by the coach, credit card monitoring and similar credit
- Business Interruption: Addresses loss of insured income and additional expenses when the
insured’s computer system sustains a detectable interruption.
- Digital Asset Loss: Addresses the costs incurred by an insured to restore digital assets following
covered corruption event.
Digital Crime – addresses various cyber crime perils and losses
- Cyber Extortion: Provides funds to cover extortion payments or expenses from a cyber demand.
- Electronic Transfer Fraud: Covers loss of insured funds from the insured’s account resulting from
corrupted or compromised wire transfer instructions. For example, if wire transfer instructions
placed by the insured are compromised by an outside party instructing the funds be transferred
to a different account. If the hacker breaks into the insured’s system then changes/manipulates
the transfer instructions or sends a false email to the bank from the insured’s system – this would
be an electronic transfer fraud scenario. In short – the insured has fallen victim to a crime where
the system was manipulated causing them harm.
- Deceptive Transfer: Commonly referred to as “social engineering” losses or confidence scams,
where the insured enters wire transfer instructions as a result of being deceived by a third-party
via electronic contact (primarily email). For example, an insured was instructed by a principal
of the firm to pay a vendor – when actually the direction was sent by a hacker who had taken
control of the principal’s email account. The hacker has essentially exploited common confidence
in a party in order to deceive them into transferring funds.
- Telephone Toll Fraud: Covers loss where an insured’s voice over IP system has been
compromised and directed to call high-cost toll numbers.
Who is cyber liability insurance for?
Cyber liability coverage is available for any Oregon business, small and large, nonprofit organizations, and retailers. You may be able to save cost by bundling coverage with another policy to create a comprehensive suite of business liability coverage.
Protectors Insurance can help you asses the risks to your business, and get you the protection you need in today’s data reliant world.