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Cyber Liability! - its a growing risk
Is your companies private data Susceptible to Breach?.
In today’s data age, almost all organizations store some form of private or confidential information,
whether it is employees, customers, or information obtained from vendors. Since 2005 more than
200 million records containing sensitive personal information have been reported in a security
breach in the United States.
Even companies without Web sites face significant risk; the company "network" can often present far
more risk than a simple Web site.
The Privacy Rights Clearinghouse, a nonprofi t consumer organization, has compiled a
chronological list of reported data breaches, available here: http://www.privacyrights.
org/ar/DataBreaches2006-Analysis.htm
Data Breaches and Privacy Rights
In 2003 California was the first state to require notice of security breaches. Since then more than 30
states have followed suit. The laws typically require that any state or local agency—or any person or
business which conducts business in the state and that owns or licenses computer data that
includes personal information—must notify in the most expedient time possible the unauthorized
acquisition of computerized data that compromises the security, confidentiality, or integrity of
personal information.
This means that a company must give notice (written or electronic) immediately should the
information be compromised regardless if the personal information that was compromised actually
was used illegally. In some cases, substitute notice (such as e-mail, Web site postings and
notification to statewide media) may be given in the event that notification costs exceed a certain
dollar amount. It is important to check with state laws.
In the past, an entity, depending on what line of business they were in, would typically purchase four
basic types of insurance policies: general liability, professional liability, property policy, and
workers’ compensation. The policies rarely, if ever, interacted with each other because each
covered a relatively distinct and separate risk.
In todays world, however, traditional insurance policies have significant gaps in coverage for digital
exposures. Even more challenging, traditional policies are being issued with broad exclusions of
coverage.
A new generation of "cyber" policies are being developed to fill the gaps. When considering
insurance it is important that you work with a broker who understands your organization and how an
insurance policy will respond.
Some key features of a strong data liability policy will include coverage for:
Security Breach or a Privacy Breach
Unauthorized Access/Use
Introduction of Malicious Code
Denial of Service Attack
Identity Theft
Identity Theft
Regulatory Actions: Coverage for lawsuits or investigations by Federal, State
or Foreign regulators relating to Privacy Laws
Notification/Credit Monitoring Coverage: First-party expenses to comply with
Privacy Law notification and Privacy Law Credit Monitoring requirements
The costs associated with notification and the liability that is arising out of privacy and security
matters is costing millions of dollars to organizations of all sizes and types. One insurance carrier
recently produced a data loss calculator that estimates that on average the costs associated with
data loss are about $166 per record. It also provides information on pending class action lawsuits
where plaintiffs are requesting $1 million to $21 million per person for damages due to data loss.
As more private data is stored electronically—and the definition of private data is broadened—it is
important to understand how these issues impact your organization and how your organization will
respond.
We now have several options and packages available to clients, at low premiums and
comprehensive coverages.
Now available through one of our packages eRisk Hub® Free to policy holders - Click Here for more
information.
If you have any questions or would like to discuss please call us at: (949) 249-2540
Is your companies private data Susceptible to Breach?.
In today’s data age, almost all organizations store some form of private or confidential information,
whether it is employees, customers, or information obtained from vendors. Since 2005 more than
200 million records containing sensitive personal information have been reported in a security
breach in the United States.
Even companies without Web sites face significant risk; the company "network" can often present far
more risk than a simple Web site.
The Privacy Rights Clearinghouse, a nonprofi t consumer organization, has compiled a
chronological list of reported data breaches, available here: http://www.privacyrights.
org/ar/DataBreaches2006-Analysis.htm
Data Breaches and Privacy Rights
In 2003 California was the first state to require notice of security breaches. Since then more than 30
states have followed suit. The laws typically require that any state or local agency—or any person or
business which conducts business in the state and that owns or licenses computer data that
includes personal information—must notify in the most expedient time possible the unauthorized
acquisition of computerized data that compromises the security, confidentiality, or integrity of
personal information.
This means that a company must give notice (written or electronic) immediately should the
information be compromised regardless if the personal information that was compromised actually
was used illegally. In some cases, substitute notice (such as e-mail, Web site postings and
notification to statewide media) may be given in the event that notification costs exceed a certain
dollar amount. It is important to check with state laws.
In the past, an entity, depending on what line of business they were in, would typically purchase four
basic types of insurance policies: general liability, professional liability, property policy, and
workers’ compensation. The policies rarely, if ever, interacted with each other because each
covered a relatively distinct and separate risk.
In todays world, however, traditional insurance policies have significant gaps in coverage for digital
exposures. Even more challenging, traditional policies are being issued with broad exclusions of
coverage.
A new generation of "cyber" policies are being developed to fill the gaps. When considering
insurance it is important that you work with a broker who understands your organization and how an
insurance policy will respond.
Some key features of a strong data liability policy will include coverage for:
- Fines, fees and penalties from HIPAA, GLB, CA 1386.
- Network security to include unauthorized access and use, data privacy, malicious code,
cyber- attacks and virus transmission.Network Security Provides liability coverage if an
insured's computer system fails to prevent a:
Security Breach or a Privacy Breach
Unauthorized Access/Use
Introduction of Malicious Code
Denial of Service Attack
Identity Theft
- Prior acts coverage.
- 1st and 3rd party coverage.
- Web site/Media Liability
- Privacy Liability Provides liability coverage if an Insured fails to protect electronic or non-
electronic information in their care custody and control.
Identity Theft
Regulatory Actions: Coverage for lawsuits or investigations by Federal, State
or Foreign regulators relating to Privacy Laws
Notification/Credit Monitoring Coverage: First-party expenses to comply with
Privacy Law notification and Privacy Law Credit Monitoring requirements
- Cyber Extortion Payments made to a party threatening to attack an insured's computer system
in order to avert a cyber attack - Crisis Management First-party expenses to hire a public relations firm
The costs associated with notification and the liability that is arising out of privacy and security
matters is costing millions of dollars to organizations of all sizes and types. One insurance carrier
recently produced a data loss calculator that estimates that on average the costs associated with
data loss are about $166 per record. It also provides information on pending class action lawsuits
where plaintiffs are requesting $1 million to $21 million per person for damages due to data loss.
As more private data is stored electronically—and the definition of private data is broadened—it is
important to understand how these issues impact your organization and how your organization will
respond.
We now have several options and packages available to clients, at low premiums and
comprehensive coverages.
Now available through one of our packages eRisk Hub® Free to policy holders - Click Here for more
information.
If you have any questions or would like to discuss please call us at: (949) 249-2540
Contact us today!
Tel. (949) 249-2540
Or use our Contact Us form to
submit an email.
Tel. (949) 249-2540
Or use our Contact Us form to
submit an email.
Gaps:
Things are changing just about every day,
and the failure to be cognizant of new (in this
case, cyber) risks can lead to losses that
could have been avoided and gaps in the
coverage that could adversely impact an
insured.
The Gaps are the unsecured exposures after
security is put in place. No matter what
technical actions are taken, there is always
Gaps.
Costs to Respond:
Cyber Liability, it's not just for the big guys,
don't risk your financial future, contact us
today to discuss your exposures:
T. (949) 249-2540
Things are changing just about every day,
and the failure to be cognizant of new (in this
case, cyber) risks can lead to losses that
could have been avoided and gaps in the
coverage that could adversely impact an
insured.
The Gaps are the unsecured exposures after
security is put in place. No matter what
technical actions are taken, there is always
Gaps.
Costs to Respond:
- Notification costs
- Credit monitoring costs
- Forensic investigations
- Call center support
- Identity theft education
- Public relations
Cyber Liability, it's not just for the big guys,
don't risk your financial future, contact us
today to discuss your exposures:
T. (949) 249-2540
Cyber Risks to you and your business
There is a growing need for cyber liability insurance to
cover technology, digital data and computer hacker
risks... Read More...
The Business Implications of Data Leaks
View a slide show provided by Sophos, view the costs of
data breaches, how they happen and what you can do to
minimize them... View Here...
There is a growing need for cyber liability insurance to
cover technology, digital data and computer hacker
risks... Read More...
The Business Implications of Data Leaks
View a slide show provided by Sophos, view the costs of
data breaches, how they happen and what you can do to
minimize them... View Here...
Get a Non-Binding Premium Indication Today!
Complete this form and fax back to our Agents.
Fax (949) 270-3704
Complete this form and fax back to our Agents.
Fax (949) 270-3704
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