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Have you heard of cyber insurance?

In today's day and age, it often times feels like the cyber criminals are always one step ahead of the rest of us and we are just one security breach away from violating HIPAA rules and regulations or losing a ton of money because our bank accounts are emptied. That's why Cyber Insurance is crucial these days.

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Privacy Wrongful Act

Breach of duty committed by the Insured or Third Party Contractor which results in:

  • misappropriation or disclosure of Personally Identifiable Information in the Insured’s care, custody or control

  • a breach or violation of U.S. federal or state statues and regulations associated with the control and use of Personally Identifiable Information

  • unauthorized access to, use of or tampering with a third party’s network

  • Identity Theft or credit/debit card fraud

  • unauthorized release of a third party’s confidential and propriety business information

Media Wrongful Acts

Breach of duty of the Insured in connection with the Insured’s Advertising or Electronic Content which results in:

  • defamation, slander or libel related to harm the character or reputation of another person

  • unfair competition, deceptive trade practices, misrepresentations, product or service disparagement of an organization

  • misappropriation or misdirection of messages or media of third parties including metatags, Website Domains and names, and related cyber content

  • plagiarism, piracy or misappropriation of ideas, infringement of copyright, domain name, trade dress, title or slogan or the dilution or infringement of trademark, service mark, service name or trade name

Notification Costs:

Reimburses the policyholder (First Party) for expenses caused by failure of computer security to prevent a security breach:

  • Cost to notify each party whose information has been breached

  • Cost to comply with state regulators

  • Cost for Public Relations firm to coordinate the disclosure of the breach

  • Cost to provide credit monitoring services to affected parties

  • Forensic expenses - investigation to determine source/cause of breach and to recommend appropriate solution

  • Insurable Costs Include (varies by insurer)

  • Legal Defense, Settlement and Judgment costs

  • Regulatory Defense Costs (may be subject to Sub-Limit)

  • Regulatory Fines & Penalties (subject to Sub-Limit)

  • Notification Costs (subject to Sub-Limit)

  • First Party Business Interruption / restoration of lost data (optional)

  • First Party Reputational Harm reimbursement (optional)

Limit of liability

Capacity from $1M to $25M on a single policy, with notification Limits inside and in some cases outside the Policy Limit

Minimum Premium

As low as $2,500 with Lloyds (includes Media,

First Party and Notification Costs)

First Party coverage for losses from Network Security Breaches:

  • Reimburses the policyholder (First Party) for out-of-pocket expenses caused by failures of computer security to prevent a security breach.

  • Cost to restore or replace data lost or destroyed (excluding hardware)

  • Network business interruption (varies by insurer)

  • Cyber extortion (varies by insurer)

  • Additional Expenses paid for damages to a firm’s reputationa (varies by insurer)

Key Exclusions

  • Fraudulent or dishonest acts by the Insured (final adjudication wording) including a carve-back for Rogue Employees

  • Failure or interruption of utility service or other infrastructure shut-down

  • Failure of the Insured to use/implement network security risk controls identified in the application

  • Expiration or withdrawal of technical support by a software vendor

  • Prior Known Events

  • Anti-trust activities

  • Under Business Interruption - no coverage for loss resulting from fire or other perils covered under a Property policy

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