Hit ratios are still very low for Security & Privacy coverage: What are companies waiting for?

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Hit ratios are still very low for Security & Privacy coverage: What are companies waiting for?"

Transcription

1 Hit ratios are still very low for Security & Privacy coverage: What are companies waiting for? Authored by Neeraj Sahni and Tim Stapleton Neeraj Sahni is Director, Insurance Channel at Kroll Cyber Investigations and focuses on cyber solutions like computer forensics and data breach remediation for insured s. Ask any insurance professional and they will say Cyber insurance is today what Employment Practices Liability Insurance (EPLI) was in the 1990 s. At the time, EPLI was designed to address gaps in Directors & Officers (D&O) and General Liability (GL) policies where coverage was not available for losses of employers arising from emerging theories of liability. These new theories of liability were primarily driven by key legislation and case examples that were widely publicized in the press, and which changed the country s collective view on cultural norms. Similarly, cyber policies cover specialized risk arising from sensitive data loss that is typically excluded in Errors & Omissions (E&O) or GL coverage. The need for Cyber coverage has also been driven by shifting cultural norms including our reliance on emerging technologies and the commercial perception of personal information as a commodity. Like EPLI, there have been key pieces of legislation and number of highly publicized cases that drive the need for this new coverage. But, what is the risk manager s true perception of the role cyber insurance plays in transferring their company s risk when sensitive data is lost, stolen or otherwise compromised? According to recent surveys executed by Advisen and Zurich, only 44% of respondents in the US currently purchase some form of cyber insurance. Market penetration outside the US is even lower as similar surveys in Europe show less than 12%. These numbers are a bit surprising given the evolving threat, litigation and regulatory landscape, however, as with any relatively new concept, we must first work to address issues that become hindrances before progress can be made. Tim Stapleton is Deputy Global Head of Professional Liability for Zurich Insurance and focuses on international underwriting for Security and Privacy Insurance. 0 P a g e

2 Observations Before going any further, it would be helpful to provide some background on what may lead to a data breach and how primary insurance carriers are responding to this risk. Listed below are a few observations: 1. Attacks that lead to the loss of sensitive data or even business interruptions are evolving, incessant and are commonly generated outside the four walls of the victim company. In some ways, network breaches are similar to physical robberies of the past. Computer crime is big business and the black hats are using automated botnets and APT (advanced persistent threat) to help them achieve their objectives. In contrast, other common causes of data loss are very low tech and may include lost laptops, portable data storage devices, or rogue employees, who are authorized users, stealing the data for a price. 2. Compliance with industry, government, or best practice risk management standards will not prevent a security breach, nor will it stop third parties from bringing claims. For example, two large payment card processing companies were both certified against the Payment Card Industry Data Security Standard (PCI DSS) at the time they suffered breaches in recent years, but were subsequently decertified after the breaches by card providers thereby increasing their potential liability and business income losses. 3. Data outsourcing activities and in particular, Cloud Computing can present a greater exposure to the loss of sensitive data. The original data owner may incur significant first party expenses and can also expect to be held liable even if the outsourced service provider suffers the breach. Complicating matters further is the fact that if a breach occurs at a cloud provider it s almost impossible to identify the extent of the compromised Personally Identifiable Information (PII) without having full access to the dataset. Remember, cloud providers are not authorized to view their customer data. Also, if a breach occurs in the cloud (public or hybrid), the challenge remains how to perform a forensics investigation on a shared space. Mitigating factors may apply such as contractual provisions that indemnify the customer, however, such provisions are typically limited to the value of the contract and replacement costs for the lost information. They may not in all cases address resulting liability or other first party expenses such as notification and remediation measures the company may offer its customers. 4. Organizations may incur both first party expenses and third party liability when dealing with a data breach. First party expenses can include the cost of hiring an attorney, conducting a forensics investigation, notifying and providing fraud remediation services to affected third parties, executing a public relations campaign, establishing a call center, and restoring crucial, proprietary digital assets. First party expenses can also include business income losses resulting from network downtime. Third party liability costs include legal defense and settlement costs for third party claims as well as defense expenses incurred to respond to a regulatory investigation, along with any resulting fines or penalties. These are just a few of the many expenses that add up rather quickly. According to the 2012 NetDiligence Cyber Claims Study, the average cost to an organization that suffered a data breach was $3.7M. 5. Derivative suits may also be filed by shareholders alleging that Directors and Officers didn t abide by their fiduciary duty to protect customer data. This illustrates the point that data breaches are not an IT risk but a business risk and should be discussed with the board of directors as they may be held directly accountable. Standard D&O policies may not cover 1 st or 3 rd party costs arising from wrongful 1 P a g e

3 disclosure of data even if a director or officer didn t perform their fiduciary duty to protect the organization s intangible assets. Compounding matters is the SEC guidance issued in 2011 requiring in some instances public companies to report cyber incidents on their public filings thereby raising awareness among the plaintiff s bar. Challenges How do companies justify the purchase of a dedicated cyber-policy? Risk managers in all US corporations are responsible to insure all company assets tangible or intangible. Sensitive data such as employee or customer information is considered an intangible asset. So if a typical company is buying property, general liability and crime insurance, then why is insurance for an increasingly valuable asset like data discretionary? It seems a challenging prospect for many risk managers to calculate return on investment for a cyber-policy and many are therefore unable to build a compelling argument to purchase. There is far less historical trending data associated with the value of Personally Identifiable Information and other sensitive data than there is for tangible assets, however, that is changing. There are a number of studies done by private enterprise, as well as a push to create public/private partnerships for this very reason so the resources available to assist with cost/benefit analysis are steadily increasing. One of the other challenges hindering buying behavior is the notion that if a company s data is hosted by a third party, they are able to transfer the risk. Not true - the owner of the data generally remains responsible for any liability that occurs due to loss of that data. Given all known breaches within various industry verticals, it s only a matter of time before a company could be the victim of a data breach. Tight security controls and excellent audit results may create a false sense of security for risk managers and the C-suite. This approach, however, is typically the inevitable precursor to a rude awakening. Damages have also been difficult for a plaintiff to prove in the liability context if their personal information was compromised. Many court cases against companies that have suffered breaches have been dismissed on the grounds that identity theft did not take place and the individuals whose records were compromised did not suffer any actual damages. Perhaps that is the case, however, it does not prohibit those individuals from forming classes and dragging the company to court which certainly results in legal defense expenses, time, and reputational issues. Another issue leading to the hindrance of buying behavior is that many risk managers subscribe to the theory that coverage is available under traditional policy forms such as CGL, Professional Liability, Crime, Property, and D&O. Perhaps in some cases there may be limited cover available under those policies; however, it is worth noting that it would be largely contingent upon the circumstances of the breach and the wording in the policy. For example, many of the specific first party costs and expenses incurred by the organization just to respond to the breach in those first crucial days or weeks would not be expressly provided. As well, many traditional P&C carriers have begun adding specific exclusionary language to clarify their intent. One other downside to relying on the lack of potential loopholes in traditional P&C coverage forms to cover data breach claims is that the insured might not receive the benefit of proactive risk management and post breach vendor resources that come with dedicated programs. Combine that with the syphoning of capacity from existing coverage for unintended circumstances and you have several compelling reasons to pursue a dedicated option. 2 P a g e

4 Solutions Many of the issues discussed above may be contemplated by security & privacy or cyber insurance policies. Carriers understand that claims are inevitable but to help mitigate catastrophic losses, many underwriters have taken a risk management approach for this coverage rather than just plain risk transfer. Carriers typically offer robust propositions that include proactive risk assessment and risk management advisory services as well as access to experienced data breach service providers. This is great news for a risk manager at an organization who can partner with their carrier to address elements beyond just financial loss. From a technical perspective, time is of the essence when a data breach incident occurs. Working with an experienced team that has been involved in multiple serious breaches with a background in law enforcement is the partnership that is needed once that claim is filed. First, stop the bleeding and protect further loss of data. At the same time, preserve the evidence for law enforcement or litigation purposes. In certain cases, where data is unstructured (PDFs, un-aligned name, addresses and SSN) data analytics tools and review may be required to determine true affected population. As you can see, a one size fits all approach doesn t work in this scenario. Notifying an entire customer base is not optimal when available data analytics tools can better identify the true affected population. This approach would help mitigate reputational damage and unnecessary expenses. Cyber insurance is seen as a growth market. There are over 30 carriers offering capacity and everyone is trying to differentiate themselves. A risk management approach allows underwriters to display cyber insurance as a partnership with the insured to help reduce risk with certain loss control methodologies. While buyers may have an increasingly hard time assessing risks and avoiding big losses, risk management innovations from insurers, brokers and partners may help make a difference. Insurers have to rely on the insured to manage its network defense. Proactively managing security framework is a loss control measure that is proving to yield a two pronged benefit; a) Reduce future data breach claim losses and b) Differentiate the cyber policy in crowded marketplace. A carrier would potentially view an insured as a better risk at renewal if the insured avails the loss control services provided as part of the policy. This may mean a premium discount for the insured at renewal and client retention for the carrier. With the evolution of the threat, litigation and regulatory landscapes, it is only reasonable to expect that cyber policies will evolve at an equal pace. Since 2003, we have already seen an impressive evolution of the coverage grants carriers are willing to provide and that have now become market standard. The customer only stands to benefit by partnering with a carrier that is dedicated to working with them to understand an exposure environment of which we have just now begun to scratch the surface. Sources: 2012 NetDiligence Cyber Claims Study The Betterley Report Cyber Privacy Insurance Market Survey 2012 A New Era in Information Security and Cyber Liability Risk Management: A Survey on Enterprise-wide Cyber risk Management Practices Information Security & Cyber Liability Risk Management: The Second Annual Survey of Enterprise-wide Cyber Risk Management Practices in Europe 3 P a g e

5 The information in this publication was compiled from sources believed to be reliable for informational purposes only. All sample policies and procedures herein should serve as a guideline, which you can use to create your own policies and procedures. We trust that you will customize these samples to reflect your own operations and believe that these samples may serve as a helpful platform for this endeavor. Any and all information contained herein is not intended to constitute legal advice and accordingly, you should consult with your own attorneys when developing programs and policies. We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication and sample policies and procedures, including any information, methods or safety suggestions contained herein. Moreover, Zurich reminds you that this cannot be assumed to contain every acceptable safety and compliance procedure or that additional procedures might not be appropriate under the circumstances The subject matter of this publication is not tied to any specific insurance product nor will adopting these policies and procedures ensure coverage under any insurance policy. Kroll Advisory Solutions is not a subsidiary or affiliate of Zurich and use of their products and services are independent of Zurich s products or services. Certain Altegrity companies provide investigative services. State licensing information can be found at These materials have been prepared for general information purposes only and do not constitute legal or other professional advice. Always consult with your own professional and legal advisors concerning your individual situation and any specific questions you may have Zurich American Insurance Company and Kroll, Inc. All rights reserved. 4 P a g e

Data Breach Cost. Risks, costs and mitigation strategies for data breaches

Data Breach Cost. Risks, costs and mitigation strategies for data breaches Data Breach Cost Risks, costs and mitigation strategies for data breaches Tim Stapleton, CIPP/US Deputy Global Head of Professional Liability Zurich General Insurance Data Breaches: Greater frequency,

More information

Insurance Considerations Related to Data Security and Breach in Outsourcing Agreements

Insurance Considerations Related to Data Security and Breach in Outsourcing Agreements Insurance Considerations Related to Data Security and Breach in Outsourcing Agreements Greater New York Chapter Association of Corporate Counsel November 19, 2015 Stephen D. Becker, Executive Vice President

More information

CYBER & PRIVACY LIABILITY INSURANCE GUIDE

CYBER & PRIVACY LIABILITY INSURANCE GUIDE CYBER & PRIVACY LIABILITY INSURANCE GUIDE 01110000 01110010 011010010111011001100001 01100 01110000 01110010 011010010111011001100001 0110 Author Gamelah Palagonia, Founder CIPM, CIPT, CIPP/US, CIPP/G,

More information

Internet Gaming: The New Face of Cyber Liability. Presented by John M. Link, CPCU Cottingham & Butler

Internet Gaming: The New Face of Cyber Liability. Presented by John M. Link, CPCU Cottingham & Butler Internet Gaming: The New Face of Cyber Liability Presented by John M. Link, CPCU Cottingham & Butler 1 Presenter John M. Link, Vice President jlink@cottinghambutler.com 2 What s at Risk? $300 billion in

More information

Managing Cyber Threats Risk Management & Insurance Solutions. Presented by: Douglas R. Jones, CPCU, ARM Senior Vice President & Principal

Managing Cyber Threats Risk Management & Insurance Solutions. Presented by: Douglas R. Jones, CPCU, ARM Senior Vice President & Principal Managing Cyber Threats Risk Management & Insurance Solutions Presented by: Douglas R. Jones, CPCU, ARM Senior Vice President & Principal Overview Recent Trends and Loss Exposures Risk Management Strategies

More information

The promise and pitfalls of cyber insurance January 2016

The promise and pitfalls of cyber insurance January 2016 www.pwc.com/us/insurance The promise and pitfalls of cyber insurance January 2016 2 top issues The promise and pitfalls of cyber insurance Cyber insurance is a potentially huge but still largely untapped

More information

Data security: A growing liability threat

Data security: A growing liability threat Data security: A growing liability threat Data security breaches occur with alarming frequency in today s technology-laden world. Even a comparatively moderate breach can cost a company millions of dollars

More information

Cyber Insurance Presentation

Cyber Insurance Presentation Cyber Insurance Presentation Presentation Outline Introduction General overview of Insurance About us Cyber loss statistics Cyber Insurance product coverage Loss examples Q & A About Us A- Rated reinsurance

More information

Privacy Liability & Data Breach Management Nikos Georgopoulos Cyber Risks Advisor cyrm October 2014

Privacy Liability & Data Breach Management Nikos Georgopoulos Cyber Risks Advisor cyrm October 2014 Privacy Liability & Data Breach Management Nikos Georgopoulos Cyber Risks Advisor cyrm October 2014 Nikos Georgopoulos Privacy Liability & Data Breach Management wwww.privacyrisksadvisors.com October 2014

More information

cyber invasions cyber risk insurance AFP Exchange

cyber invasions cyber risk insurance AFP Exchange Cyber Risk With cyber invasions now a common place occurrence, insurance coverage isn t found in your liability policy. So many different types of computer invasions exist, but there is cyber risk insurance

More information

Cyber Insurance as one element of the Cyber risk management strategy

Cyber Insurance as one element of the Cyber risk management strategy Cyber Insurance as one element of the Cyber risk management strategy Stéphane Hurtaud Partner Governance, Risk & Compliance Thierry Flamand Partner Insurance Leader Laurent de la Vaissière Director Governance,

More information

Cyber Risks Management. Nikos Georgopoulos, MBA, cyrm Cyber Risks Advisor

Cyber Risks Management. Nikos Georgopoulos, MBA, cyrm Cyber Risks Advisor Cyber Risks Management Nikos Georgopoulos, MBA, cyrm Cyber Risks Advisor 1 Contents Corporate Assets Data Breach Costs Time from Earliest Evidence of Compromise to Discovery of Compromise The Data Protection

More information

SOCIAL MEDIA MOBILE DEVICES CLOUD SERVICES INTERNET OF THINGS (IOT)

SOCIAL MEDIA MOBILE DEVICES CLOUD SERVICES INTERNET OF THINGS (IOT) INFORMATION SECURITY AND CYBER LIABILITY RISK MANAGEMENT THE FIFTH ANNUAL SURVEY ON THE CURRENT STATE OF AND TRENDS IN INFORMATION SECURITY AND CYBER LIABILITY RISK MANAGEMENT Sponsored by October 2015

More information

Cyber Liability. AlaHA Annual Meeting 2013

Cyber Liability. AlaHA Annual Meeting 2013 Cyber Liability AlaHA Annual Meeting 2013 Disclaimer We are not providing legal advise. This Presentation is a broad overview of health care cyber loss exposures, the process in the event of loss and coverages

More information

Data Breach and Cybersecurity: What Happens If You or Your Vendor Is Hacked

Data Breach and Cybersecurity: What Happens If You or Your Vendor Is Hacked Data Breach and Cybersecurity: What Happens If You or Your Vendor Is Hacked Linda Vincent, R.N., P.I., CITRMS Vincent & Associates Founder The Identity Advocate San Pedro, California The opinions expressed

More information

Cyber-insurance: Understanding Your Risks

Cyber-insurance: Understanding Your Risks Cyber-insurance: Understanding Your Risks Cyber-insurance represents a complete paradigm shift. The assessment of real risks becomes a critical part of the analysis. This article will seek to provide some

More information

Cyber Risks in Italian market

Cyber Risks in Italian market Cyber Risks in Italian market Milano, 01.10.2014 Forum Ri&Assicurativo Gianmarco Capannini Agenda 1 Cyber Risk - USA 2 Cyber Risk Europe experience trends Market size and trends Market size and trends

More information

GALLAGHER CYBER LIABILITY PRACTICE. Tailored Solutions for Cyber Liability and Professional Liability

GALLAGHER CYBER LIABILITY PRACTICE. Tailored Solutions for Cyber Liability and Professional Liability GALLAGHER CYBER LIABILITY PRACTICE Tailored Solutions for Cyber Liability and Professional Liability Are you exposed to cyber risk? Like nearly every other business, you have probably capitalized on the

More information

THE NEW REALITY OF RISK CYBER RISK: TRENDS AND SOLUTIONS

THE NEW REALITY OF RISK CYBER RISK: TRENDS AND SOLUTIONS THE NEW REALITY OF RISK CYBER RISK: TRENDS AND SOLUTIONS Read the Marsh Risk Management Research Briefing: Cyber Risks Extend Beyond Data and Privacy Exposures To access the report, visit www.marsh.com.

More information

ISO? ISO? ISO? LTD ISO?

ISO? ISO? ISO? LTD ISO? Property NetProtect 360 SM and NetProtect Essential SM Which one is right for your client? Do your clients Use e-mail? Rely on networks, computers and electronic data to conduct business? Browse the Internet

More information

THE DIGITAL AGE THE DEFINITIVE CYBERSECURITY GUIDE FOR DIRECTORS AND OFFICERS

THE DIGITAL AGE THE DEFINITIVE CYBERSECURITY GUIDE FOR DIRECTORS AND OFFICERS THE DIGITAL AGE THE DEFINITIVE CYBERSECURITY GUIDE FOR DIRECTORS AND OFFICERS Download the entire guide and follow the conversation at SecurityRoundtable.org Investment in cyber insurance Lockton Companies

More information

RISKY BUSINESS SEMINAR CYBER LIABILITY DISCUSSION

RISKY BUSINESS SEMINAR CYBER LIABILITY DISCUSSION RISKY BUSINESS SEMINAR CYBER LIABILITY DISCUSSION October 23, 2015 THREAT ENVIRONMENT Growing incentive for insiders to abuse access to sensitive data for financial gain Disgruntled current and former

More information

Data Breach and Senior Living Communities May 29, 2015

Data Breach and Senior Living Communities May 29, 2015 Data Breach and Senior Living Communities May 29, 2015 Todays Objectives: 1. Discuss Current Data Breach Trends & Issues 2. Understanding Why The Senior Living Industry May Be A Target 3. Data Breach Costs

More information

Delaware Cyber Security Workshop September 29, 2015. William R. Denny, Esquire Potter Anderson & Corroon LLP

Delaware Cyber Security Workshop September 29, 2015. William R. Denny, Esquire Potter Anderson & Corroon LLP Changing Legal Landscape in Cybersecurity: Implications for Business Delaware Cyber Security Workshop September 29, 2015 William R. Denny, Esquire Potter Anderson & Corroon LLP Agenda Growing Cyber Threats

More information

Joe A. Ramirez Catherine Crane

Joe A. Ramirez Catherine Crane RIMS/RMAFP PRESENTATION Joe A. Ramirez Catherine Crane RISK TRANSFER VIA INSURANCE Most Common Method Involves Assessment of Risk and Loss Potential Risk of Loss Transferred For a Premium Insurance Contract

More information

In an ever changing business and social environment it has become increasingly

In an ever changing business and social environment it has become increasingly DIRECTORS AND OFFICERS INSURANCE ISSUES By: National Business Institute June 20, 2008 Howard L. Lieber FISHER KANARIS, P.C. 200 South Wacker Drive 22nd Floor Chicago, Illinois 60606 312/474-1400 In an

More information

CYBER LIABILITY INSURANCE MARKET TRENDS: SURVEY. October 2014. Sponsored by:

CYBER LIABILITY INSURANCE MARKET TRENDS: SURVEY. October 2014. Sponsored by: CYBER LIABILITY INSURANCE MARKET TRENDS: SURVEY October 2014 CYBER LIABILITY INSURANCE MARKET TRENDS: SURVEY Global reinsurer PartnerRe collaborated with Advisen to conduct a comprehensive market survey

More information

Cyber Risk State of the Art

Cyber Risk State of the Art Proudly presents Cyber Risk State of the Art Matthew Davies, Chubb Insurance Catherine Dowdall, Canada Post Mike Petersen, Marsh 1 Agenda 1. Who is At Risk? 2. New/Emerging Risk and Trends 3. Canada Post

More information

Managing Cyber & Privacy Risks

Managing Cyber & Privacy Risks Managing Cyber & Privacy Risks NAATP Conference 2013 NSM Insurance Group Sean Conaboy Rich Willetts SEAN CONABOY INSURANCE BROKER NSM INSURANCE GROUP o Sean has been with NSM Insurance Group for the past

More information

Network Security & Privacy Landscape

Network Security & Privacy Landscape Network Security & Privacy Landscape Presented By: Greg Garijanian Senior Underwriter Professional Liability 1 Agenda Network Security Overview -Latest Threats - Exposure Trends - Regulations Case Studies

More information

Data Security Breaches: Learn more about two new regulations and how to help reduce your risks

Data Security Breaches: Learn more about two new regulations and how to help reduce your risks Data Security Breaches: Learn more about two new regulations and how to help reduce your risks By Susan Salpeter, Vice President, Zurich Healthcare Risk Management News stories about data security breaches

More information

Can Cyber Insurance Be Linked to Assurance?

Can Cyber Insurance Be Linked to Assurance? SESSION ID: CXO-W03 Can Cyber Insurance Be Linked to Assurance? Larry Clinton President and CEO Internet Security Alliance @ISalliance Dan Reddy Adjunct Faculty: Engineering & Technology Quinsigamond Community

More information

CYBER & PRIVACY INSURANCE FOR FINANCIAL INSTITUTIONS

CYBER & PRIVACY INSURANCE FOR FINANCIAL INSTITUTIONS CYBER & PRIVACY INSURANCE FOR FINANCIAL INSTITUTIONS 1 As regulators around the world move to tighten compliance requirements for financial institutions, improvement in cyber security controls will become

More information

CYBERSECURITY: Is Your Business Ready?

CYBERSECURITY: Is Your Business Ready? CYBERSECURITY: Is Your Business Ready? Cybersecurity: Is your business ready? Cyber risk is just like any other corporate risk and it must be managed from the top. An organization will spend time monitoring

More information

The Legal Pitfalls of Failing to Develop Secure Cloud Services

The Legal Pitfalls of Failing to Develop Secure Cloud Services SESSION ID: CSV-R03 The Legal Pitfalls of Failing to Develop Secure Cloud Services Cristin Goodwin Senior Attorney, Trustworthy Computing & Regulatory Affairs Microsoft Corporation Edward McNicholas Global

More information

MANAGING Cybersecurity Risk AND DISCLOSURE OBLIGATIONS

MANAGING Cybersecurity Risk AND DISCLOSURE OBLIGATIONS MANAGING Cybersecurity Risk AND DISCLOSURE OBLIGATIONS RRD Donnelley SEC Hot Topics Institute May 21, 2014 1 MANAGING CYBERSECURITY RISK AND DISCLOSURE OBLIGATIONS Patrick J. Schultheis Partner Wilson

More information

Discussion on Network Security & Privacy Liability Exposures and Insurance

Discussion on Network Security & Privacy Liability Exposures and Insurance Discussion on Network Security & Privacy Liability Exposures and Insurance Presented By: Kevin Violette Errors & Omissions Senior Broker, R.T. Specialty, LLC February, 25 2014 HFMA Washington-Alaska Chapter

More information

Mitigating and managing cyber risk: ten issues to consider

Mitigating and managing cyber risk: ten issues to consider Mitigating and managing cyber risk: ten issues to consider The board of directors is responsible for managing and mitigating risk exposure. A recent study conducted by the Ponemon Institute 1 revealed

More information

Zurich Security And Privacy Protection Policy Application

Zurich Security And Privacy Protection Policy Application Zurich Security And Privacy Protection Policy Application COVERAGE A. AND COVERAGE F. OF THE POLICY FOR WHICH YOU ARE APPLYING IS WRITTEN ON A CLAIMS FIRST MADE AND REPORTED BASIS. ONLY CLAIMS FIRST MADE

More information

WHITE PAPER BREACH, PRIVACY, AND CYBER COVERAGES: FACT AND FICTION CYBER COVERAGES

WHITE PAPER BREACH, PRIVACY, AND CYBER COVERAGES: FACT AND FICTION CYBER COVERAGES BREACH, PRIVACY, AND CYBER COVERAGES: FACT AND FICTION IDT911 1 DEFINITIONS 1. Cyber Programs - Focuses on services and systems related to technology and their use in business. Risks addressed include

More information

CYBER RISK SECURITY, NETWORK & PRIVACY

CYBER RISK SECURITY, NETWORK & PRIVACY CYBER RISK SECURITY, NETWORK & PRIVACY CYBER SECURITY, NETWORK & PRIVACY In the ever-evolving technological landscape in which we live, our lives are dominated by technology. The development and widespread

More information

What you need to know and what you can t afford to ignore!

What you need to know and what you can t afford to ignore! Cyber Risk: What you need to know and what you can t afford to ignore! James Johnston Directors' and Officers' Insurance Underwriter Daniel Fletcher Cyber Insurance Underwriter Financial & Specialty Markets

More information

Anatomy of a Privacy and Data Breach

Anatomy of a Privacy and Data Breach Anatomy of a Privacy and Data Breach Understanding the Risk and Managing a Crisis Adam Kardash: Partner, Heenan Blaikie LLP Robert Parisi: Senior Vice President, Marsh Leadership, Knowledge, Solutions

More information

Cyber Risk, Legal And Regulatory Issues, And Insurance Mitigation ISACA Pittsburgh Information Security Awareness Day

Cyber Risk, Legal And Regulatory Issues, And Insurance Mitigation ISACA Pittsburgh Information Security Awareness Day Lloyd s of London (Reuters) May 8, 2000 Cyber Risk, Legal And Regulatory Issues, And Insurance Mitigation ISACA Pittsburgh Information Security Awareness Day Rivers Casino, Pittsburgh November 17, 2014

More information

Cyberinsurance: Insuring for Data Breach Risk

Cyberinsurance: Insuring for Data Breach Risk View the online version at http://us.practicallaw.com/2-588-8785 Cyberinsurance: Insuring for Data Breach Risk JUDY SELBY AND C. ZACHARY ROSENBERG, BAKER HOSTETLER LLP, WITH PRACTICAL LAW INTELLECTUAL

More information

Understanding the Business Risk

Understanding the Business Risk AAPA Cybersecurity Seminar Andaz Savannah Hotel March 11, 2015 10:30 am Noon Understanding the Business Risk Presenter: Joshua Gold, Esq. (212) 278-1886 jgold@andersonkill.com Disclaimer The views expressed

More information

Cyber Security and Privacy Services. Working in partnership with you to protect your organisation from cyber security threats and data theft

Cyber Security and Privacy Services. Working in partnership with you to protect your organisation from cyber security threats and data theft Cyber Security and Privacy Services Working in partnership with you to protect your organisation from cyber security threats and data theft 2 Cyber Security and Privacy Services What drives your security

More information

EMERGING CYBER RISK CYBER ATTACKS AND PROPERTY DAMAGE: WILL INSURANCE RESPOND?

EMERGING CYBER RISK CYBER ATTACKS AND PROPERTY DAMAGE: WILL INSURANCE RESPOND? EMERGING CYBER RISK CYBER ATTACKS AND PROPERTY DAMAGE: WILL INSURANCE RESPOND? ABOUT JLT SPECIALTY JLT Specialty Insurance Services is the U.S. platform of JLT Group, the leading specialty business adivsory

More information

SPOTLIGHT ON. Insurance and Bonding Considerations for Registered Investment Advisors

SPOTLIGHT ON. Insurance and Bonding Considerations for Registered Investment Advisors SPOTLIGHT ON Insurance and Bonding Considerations for Registered Investment Advisors The contents of this Spotlight have been prepared for informational purposes only, and should not be construed as legal

More information

Cyber Insurance: How to Investigate the Right Coverage for Your Company

Cyber Insurance: How to Investigate the Right Coverage for Your Company 6-11-2015 Cyber Insurance: How to Investigate the Right Coverage for Your Company Presented by: Faith M. Heikkila, Ph.D., CISM, CIPM, CIPP-US, ABCP Greenleaf Trust Chief Information Security Officer (CISO)

More information

Investment Advisors & Financial Professionals: Using your Insurance as a Marketing Tool

Investment Advisors & Financial Professionals: Using your Insurance as a Marketing Tool INVESTMENT ADVISOR SERIES Investment Advisors & Financial Professionals: Using your Insurance as a Marketing Tool Presented by North American Professional Liability Insurance Agency, LLC (NAPLIA) 161 Worcester

More information

CyberSecurity for Law Firms

CyberSecurity for Law Firms CyberSecurity for Law Firms Cracking the Cyber Code: Recent Headlines, Reinforcing the Need and Response Planning July 16, 2013 Making the Case Matthew Magner Senior Underwriting Officer Chubb & Son, a

More information

Cyber and Privacy Risk What Are the Trends? Is Insurance the Answer?

Cyber and Privacy Risk What Are the Trends? Is Insurance the Answer? Minnesota Society for Healthcare Risk Management September 22, 2011 Cyber and Privacy Risk What Are the Trends? Is Insurance the Answer? Melissa Krasnow, Partner, Dorsey & Whitney, and Certified Information

More information

SINGAPORE HEALTHCARE ENTERPRISE RISK MANAGEMENT CONGRESS 2014 - Data Breach : The Emerging Threat to Healthcare Industry

SINGAPORE HEALTHCARE ENTERPRISE RISK MANAGEMENT CONGRESS 2014 - Data Breach : The Emerging Threat to Healthcare Industry SINGAPORE HEALTHCARE ENTERPRISE RISK MANAGEMENT CONGRESS 2014 - Data Breach : The Emerging Threat to Healthcare Industry DATA BREACH A FICTIONAL CASE STUDY THE FIRST SIGNS OF TROUBLE Friday, 5.20 pm :

More information

Cyber Risks in the Boardroom

Cyber Risks in the Boardroom Cyber Risks in the Boardroom Managing Business, Legal and Reputational Risks Perspectives for Directors and Executive Officers Preparing Your Company to Identify, Mitigate and Respond to Risks in a Changing

More information

Cyber Insurance: How to Investigate the

Cyber Insurance: How to Investigate the 10-26-2015 Cyber Insurance: How to Investigate the Right Coverage for Your Company Presented by: Faith M. Heikkila, Ph.D., CISM, CIPM, CIPP-US, ABCP Greenleaf Trust Chief Information Security Officer (CISO)

More information

ANATOMY of a DATA BREACH DISASTER. Avoiding a Cyber Catastrophe. June, 2011. Sponsored by:

ANATOMY of a DATA BREACH DISASTER. Avoiding a Cyber Catastrophe. June, 2011. Sponsored by: ANATOMY of a DATA BREACH DISASTER Avoiding a Cyber Catastrophe June, 2011 Sponsored by: ANATOMY of a DATA BREACH DISASTER Avoiding a Cyber Catastrophe An Advisen Special Report Sponsored by Chartis Security

More information

Cybersecurity: Emerging Exposures for Technology Companies. October 7, 2010

Cybersecurity: Emerging Exposures for Technology Companies. October 7, 2010 Cybersecurity: Emerging Exposures for Technology Companies October 7, 2010 Your panelists David Allred, Head of the Technology Segment for North America Commercial at Zurich Liesyl Franz, Vice President

More information

INFORMATION SECURITY CYBER LIABILITY RISK MANAGEMENT. October 2013. Sponsored by:

INFORMATION SECURITY CYBER LIABILITY RISK MANAGEMENT. October 2013. Sponsored by: 2013 INFORMATION SECURITY CYBER LIABILITY RISK MANAGEMENT & October 2013 & INFORMATION SECURITY CYBER LIABILITY RISK MANAGEMENT: The Third Annual Survey on the Current State of and Trends in Information

More information

What Data? I m A Trucking Company!

What Data? I m A Trucking Company! What Data? I m A Trucking Company! Presented by: Marc C. Tucker 434 Fayetteville Street, Suite 2800 Raleigh, NC, 27601 919.755.8713 marc.tucker@smithmoorelaw.com Presented by: Rob D. Moseley, Jr. 2 West

More information

Specialty Risk Protector

Specialty Risk Protector Specialty Professional Liability and Data and Network Security Insurance is a single policy that makes it easy for companies to secure the multi-faceted E&O protection our networked world requires. A simplified,

More information

DATA BREACH, NETWORK SECURITY, CYBER LIABILITY, PRIVACY PROTECTION: ARE YOU INSURED?

DATA BREACH, NETWORK SECURITY, CYBER LIABILITY, PRIVACY PROTECTION: ARE YOU INSURED? DATA BREACH, NETWORK SECURITY, CYBER LIABILITY, PRIVACY PROTECTION: ARE YOU INSURED? February 3, 2012 Steve Brown, Agency Manager West Virginia Medical Insurance Agency How many in the audience today will

More information

Ten Questions Your Board Should be asking about Cyber Security. Eric M. Wright, Shareholder

Ten Questions Your Board Should be asking about Cyber Security. Eric M. Wright, Shareholder Ten Questions Your Board Should be asking about Cyber Security Eric M. Wright, Shareholder Eric Wright, CPA, CITP Started my career with Schneider Downs in 1983. Responsible for all IT audit and system

More information

DATA BREACH COVERAGE

DATA BREACH COVERAGE THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ THIS CAREFULLY. DATA BREACH COVERAGE SCHEDULE OF COVERAGE LIMITS Coverage Limits of Insurance Data Breach Coverage $50,000 Legal Expense Coverage $5,000

More information

CYBER SECURITY SPECIALREPORT

CYBER SECURITY SPECIALREPORT CYBER SECURITY SPECIALREPORT 32 The RMA Journal February 2015 Copyright 2015 by RMA INSURANCE IS AN IMPORTANT TOOL IN CYBER RISK MITIGATION Shutterstock, Inc. The time to prepare for a potential cyber

More information

Investment Advisors & Financial Professionals: Using your Insurance as a Marketing Tool

Investment Advisors & Financial Professionals: Using your Insurance as a Marketing Tool Investment Advisors & Financial Professionals: Using your Insurance as a Marketing Tool By Gary Sutherland, CIC & Tom Schrandt Presented by North American Professional Liability Insurance Agency, LLC (NAPLIA)

More information

Breege Lynn BA, GDIP, FCII Senior Vice President, Marsh Commercial Dublin

Breege Lynn BA, GDIP, FCII Senior Vice President, Marsh Commercial Dublin PROFESSIONAL INDEMNITY INSURANCE MAKING IT WORK FOR YOU 17TH FEBRUARY, 2014 Breege Lynn BA, GDIP, FCII Senior Vice President, Marsh Commercial Dublin Professional Indemnity It s primary purpose The object

More information

Willis Healthcare Practice 11 th Annual Forum July 10,2007. Managing and Insuring Risks in Network Privacy/Cyber Risk

Willis Healthcare Practice 11 th Annual Forum July 10,2007. Managing and Insuring Risks in Network Privacy/Cyber Risk Willis Healthcare Practice 11 th Annual Forum July 10,2007 Managing and Insuring Risks in Network Privacy/Cyber Risk What is Network Security & Privacy Insurance? Created to cover gaps in traditional insurance

More information

www.pwc.co.uk Cyber security Building confidence in your digital future

www.pwc.co.uk Cyber security Building confidence in your digital future www.pwc.co.uk Cyber security Building confidence in your digital future November 2013 Contents 1 Confidence in your digital future 2 Our point of view 3 Building confidence 4 Our services Confidence in

More information

Don t Wait Until It s Too Late: Top 10 Recommendations for Negotiating Your Cyber Insurance Policy

Don t Wait Until It s Too Late: Top 10 Recommendations for Negotiating Your Cyber Insurance Policy Privacy, Data Security & Information Use Insurance Recovery & Advisory Cyber Insurance June 17, 2015 Don t Wait Until It s Too Late: Top 10 Recommendations for Negotiating Your Cyber Insurance Policy By

More information

Cyber Risk: Global Warning? by Cinzia Altomare, Gen Re

Cyber Risk: Global Warning? by Cinzia Altomare, Gen Re Cyber Risk: Global Warning? by Cinzia Altomare, Gen Re Global Warning It is a matter of time before there is a major cyber attackon the global financial system and the public needs to invest heavily in

More information

Personal Information Threats & Risks: Responding to an Evolving Landscape with an Integrated Data Protection Approach

Personal Information Threats & Risks: Responding to an Evolving Landscape with an Integrated Data Protection Approach Personal Information Threats & Risks: Responding to an Evolving Landscape with an Integrated Data Protection Approach Don MacPherson January 2012 Discussion Items 1. Threats and risks to personal information

More information

Who s next after TalkTalk?

Who s next after TalkTalk? Who s next after TalkTalk? Frequently Asked Questions on Cyber Risk Fraud threat to millions of TalkTalk customers TalkTalk cyber-attack: website hit by significant breach These are just two of the many

More information

Protecting Your Assets: How To Safeguard Your Fund Against Cyber Security Attacks

Protecting Your Assets: How To Safeguard Your Fund Against Cyber Security Attacks Protecting Your Assets: How To Safeguard Your Fund Against Cyber Security Attacks Hacks, breaches, stolen data, trade secrets hijacked, privacy violated, ransom demands made; how can you protect your data

More information

PCI Compliance for Healthcare

PCI Compliance for Healthcare PCI Compliance for Healthcare Best practices for securing payment card data In just five years, criminal attacks on healthcare organizations are up by a stunning 125%. 1 Why are these data breaches happening?

More information

Cyber/ Network Security. FINEX Global

Cyber/ Network Security. FINEX Global Cyber/ Network Security FINEX Global ABOUT US >> We are one of the largest insurance brokers in the world >> We have over 180 years of history and experience in insurance; we currently operate in over

More information

Policy Considerations for Covering Special Exposures. Claire Lee Reiss Program Director National League of Cities Risk Information Sharing Consortium

Policy Considerations for Covering Special Exposures. Claire Lee Reiss Program Director National League of Cities Risk Information Sharing Consortium Policy Considerations for Covering Special Exposures Claire Lee Reiss Program Director National League of Cities Risk Information Sharing Consortium Special exposures Coverage that targets a loss with

More information

Cyber Risks Connect With Directors and Officers

Cyber Risks Connect With Directors and Officers Cyber Risks Connect With Directors and Officers Implications of the New SEC Guidance on Cyber Security February 2012 Lockton Companies, LLC The Securities and Exchange Commission (SEC) has changed the

More information

ACE Advantage PRIVACY & NETWORK SECURITY

ACE Advantage PRIVACY & NETWORK SECURITY ACE Advantage PRIVACY & NETWORK SECURITY SUPPLEMENTAL APPLICATION COMPLETE THIS APPLICATION ONLY IF REQUESTING COVERAGE FOR PRIVACY LIABILITY AND/OR NETWORK SECURITY LIABILITY COVERAGE. Please submit with

More information

DATA SECURITY BREACH: THE NEW THIRD CERTAINTY OF LIFE

DATA SECURITY BREACH: THE NEW THIRD CERTAINTY OF LIFE DATA SECURITY BREACH: THE NEW THIRD CERTAINTY OF LIFE ACC-Charlotte February 4, 2015 THIS WILL NEVER HAPPEN TO ME! Death, Taxes & Data Breach Not just Home Depot, Target or Sony Do you employ the next

More information

Privacy / Network Security Liability Insurance Discussion. January 30, 2013. Kevin Violette RT ProExec

Privacy / Network Security Liability Insurance Discussion. January 30, 2013. Kevin Violette RT ProExec Privacy / Network Security Liability Insurance Discussion January 30, 2013 Kevin Violette RT ProExec 1 Irrefutable Laws of Information Security 1) Information wants to be free People want to talk, post,

More information

Best practices and insight to protect your firm today against tomorrow s cybersecurity breach

Best practices and insight to protect your firm today against tomorrow s cybersecurity breach Best practices and insight to protect your firm today against tomorrow s cybersecurity breach July 8, 2015 Baker Tilly Virchow Krause, LLP Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently

More information

Data breach, cyber and privacy risks. Brian Wright Lloyd Wright Consultants Ltd

Data breach, cyber and privacy risks. Brian Wright Lloyd Wright Consultants Ltd Data breach, cyber and privacy risks Brian Wright Lloyd Wright Consultants Ltd Contents Data definitions and facts Understanding how a breach occurs How insurance can help to manage potential exposures

More information

Be Afraid, Be Very Afraid!!! Hacking Out the Pros and Cons of Captive Cyber Liability Insurance

Be Afraid, Be Very Afraid!!! Hacking Out the Pros and Cons of Captive Cyber Liability Insurance Be Afraid, Be Very Afraid!!! Hacking Out the Pros and Cons of Captive Cyber Liability Insurance Today s agenda Introductions Cyber exposure overview Cyber insurance market and coverages Captive cyber insurance

More information

Managing Your Cyber & Data Risk 2010 NTA Convention Montreal, Quebec

Managing Your Cyber & Data Risk 2010 NTA Convention Montreal, Quebec Managing Your Cyber & Data Risk 2010 NTA Convention Montreal, Quebec Jeremy Ong Divisional Vice-President Great American Insurance Company November 13, 2010 1 Agenda Overview of data breach statistics

More information

Navigating Cyber Risk Exposure and Insurance. Stephen Wares EMEA Cyber Risk Practice Leader Marsh

Navigating Cyber Risk Exposure and Insurance. Stephen Wares EMEA Cyber Risk Practice Leader Marsh Navigating Cyber Risk Exposure and Insurance Stephen Wares EMEA Cyber Risk Practice Leader Marsh Presentation Format Four Key Questions How important is cyber risk and how should we view the cyber threat?

More information

Insurance Coverage In Consumer Class Actions

Insurance Coverage In Consumer Class Actions This article first appeared in the October 2010 issue of The Corporate Counselor. Insurance Coverage In Consumer Class Actions John W. McGuinness and Justin F. Lavella The business world is an increasingly

More information

Network Security & Privacy Landscape

Network Security & Privacy Landscape Network Security & Privacy Landscape Presented By: Pam Townley, AVP / Eastern Zonal Manager AIG Professional Liability Division Jennifer Bolling, Account Executive Gallagher Management Liability Division

More information

Privacy Insurance. Avoiding the HMO Experience. cyber. More Differences. By Toby Merrill

Privacy Insurance. Avoiding the HMO Experience. cyber. More Differences. By Toby Merrill Privacy Insurance Avoiding the HMO Experience By Toby Merrill Privacy, as it relates to an individual s personally identifiable information, such as Social Security numbers, credit card and healthcare

More information

Cybersecurity y Managing g the Risks

Cybersecurity y Managing g the Risks Cybersecurity y Managing g the Risks Presented by: Steven L. Caponi Jennifer Daniels Gregory F. Linsin 99 Cybersecurity The Risks Are Real Perpetrators are as varied as their goals Organized Crime: seeking

More information

Navigating the complexities and risks of doing business abroad

Navigating the complexities and risks of doing business abroad Navigating the complexities and risks of doing business abroad Navigating the complexities and risks of doing business abroad International commerce has become increasingly accessible in recent years,

More information

Cyber Exposure for Credit Unions

Cyber Exposure for Credit Unions Cyber Exposure for Credit Unions What it is and how to protect yourself L O C K T O N 2 0 1 2 www.lockton.com Add Cyber Title Exposure Here Overview #1 financial risk for Credit Unions Average cost of

More information

Senate Committee on Commerce, Science, and Transportation March 19, 2015, Hearing Examining the Evolving Cyber Insurance Marketplace

Senate Committee on Commerce, Science, and Transportation March 19, 2015, Hearing Examining the Evolving Cyber Insurance Marketplace Senate Committee on Commerce, Science, and Transportation March 19, 2015, Hearing Examining the Evolving Cyber Insurance Marketplace Testimony of Ben Beeson Vice President, Cyber Security and Privacy Lockton

More information

Cyber Liability. Michael Cavanaugh, RPLU Vice President, Director of Production Apogee Insurance Group 877-337-3200 Ext. 7029

Cyber Liability. Michael Cavanaugh, RPLU Vice President, Director of Production Apogee Insurance Group 877-337-3200 Ext. 7029 Cyber Liability Michael Cavanaugh, RPLU Vice President, Director of Production Apogee Insurance Group 877-337-3200 Ext. 7029 Today s Agenda What is Cyber Liability? What are the exposures? Reality of a

More information

Cyber Threats: Exposures and Breach Costs

Cyber Threats: Exposures and Breach Costs Issue No. 2 THREAT LANDSCAPE Technological developments do not only enhance capabilities for legitimate business they are also tools that may be utilized by those with malicious intent. Cyber-criminals

More information

SECURITY, CYBER AND NETWORK INSURANCE SECURING YOUR FUTURE

SECURITY, CYBER AND NETWORK INSURANCE SECURING YOUR FUTURE SECURITY, CYBER AND NETWORK INSURANCE SECURING YOUR FUTURE Businesses today rely heavily on computer networks. Using computers, and logging on to public and private networks has become second nature to

More information

Data breach! cyber and privacy risks. Brian Wright Michael Guidry Lloyd Guidry LLC

Data breach! cyber and privacy risks. Brian Wright Michael Guidry Lloyd Guidry LLC Data breach! cyber and privacy risks Brian Wright Michael Guidry Lloyd Guidry LLC Collaborative approach Objective: To develop your understanding of a data breach, and risk transfer options to help you

More information

MANAGEMENT AND PROFESSIONAL LIABILITY INSURANCE

MANAGEMENT AND PROFESSIONAL LIABILITY INSURANCE U.S. FINPRO MANAGEMENT AND PROFESSIONAL LIABILITY INSURANCE ALTERNATIVE INVESTMENT FUNDS/HEDGE FUNDS In turbulent economic times, the importance of a well designed management and professional liability

More information

Need for Cyberliability Insurance Continues to Grow

Need for Cyberliability Insurance Continues to Grow Need for Cyberliability Insurance Continues to Grow 14 benefits magazine may 2015 MAGAZINE Reproduced with permission from Benefits Magazine, Volume 52, No. 5, May 2015, pages 14-19, published by the International

More information

plantemoran.com What School Personnel Administrators Need to know

plantemoran.com What School Personnel Administrators Need to know plantemoran.com Data Security and Privacy What School Personnel Administrators Need to know Tomorrow s Headline Let s hope not District posts confidential data online (Tech News, May 18, 2007) In one of

More information