Cyber Insurance
Three Elements To Consider About Cyber Insurance
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Risk Mitigation – How to reduce the odds or severity of something happening.
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Risk Transfer – How to contractually shift a portion of our risk to someone else
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Response / Recovery – Something happened, what are the option available and next course of action
How Do Incidents Occur?
Identify the Exposure
External Threats
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Hackers
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Viruses
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Social Media
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Third-Party Vendors – exposure of protected data resulting from the breach of a 3rd party, such as cloud or payroll providers.
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Changing Regulatory Environment – New laws and regulation are introduced causing additional regulatory exposure
Internal Threats
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Rogue Employees
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Human Error
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Mobile Devices
What is covered?
First Party
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Incident Response – from an actual or suspected cyber event
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Business Interruption – loss of net profit and continuing operating expenses
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Data and System Recovery – increased cost of work, data recovery costs, additional business interruption mitigation
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Cyber Extortion – extortion payments and negotiation
Thirty Party
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Privacy and Network Security Liability– liability following data breach or failure of network security:
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PCI DSS contractual fines and penalties
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Consumer redress fund
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Regulatory fines and penalties (where legally insurable) – GDPR
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Media Liability – liability following defamation or infringement online
The Highlights
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Contingent business interruption –for outsourced technology providers
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System failure triggers – human error, programming error, power failure
Extensions
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Emergency incident
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response expenses within 48 hours for SME and Middle Market insureds – nil deductible
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Betterment costs – improvement of software and applications
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Cyber crime – direct financial loss following cyber theft
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Reward expenses
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Telecommunications fraud
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Pay on behalf for incident response expenses
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Flexible incident response providers
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Rogue employee
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Voluntary notification
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Voluntary shutdown
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By endorsement: Reputational Harm Extension, Social Engineering Fraud
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Cyber terrorism
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Worldwide coverage