Cyber risk

If you collect your customer’s personal information, then you may already be aware of state breach notification laws and federal laws regarding the loss, theft, or possible compromise of personal data.

Cyber breaches continue to be a concern for business owners as the sophistication and reliance on Internet technology increases faster than ever before. Not only do you have to consider internal risks such as a malcontent or negligent employee, but also bad actors that may attempt to take advantage of security flaws in your network, hardware, software, or honest, but unaware employees. According to Ponemon’s 2016 benchmark study, the average cost for each lost or stolen record containing sensitive and confidential information is $221.

A rudimentary calculation concerning a portion of the overall cost of a breach would be 500 records stolen multiplied by $221 equals $110,500. Again we caution you this is only a portion of the overall cost.

Frequently asked questions

Why do I need a Cyber policy? I have E&O or a Commercial General Liability Policy which provides Cyber Coverage

Yes and No. Yes because you may have an endorsement in a policy which covers Cyber. While there may be an endorsement for cyber, but it's capped at $25,000. CGL's are written for tangible assets

I outsource our technology and the vendor carries Cyber Insurance

Yes and No. Yes, the vendor has coverage and it most likely doesn't apply to you. Read either the indemnification or hold harmless clause in your contract

I'm a small firm. The authorities can't treat us as if we have a $100mn tech budget

Yes and No. Yes you are correct the authorities will not treat you as if you have a $100mn tech budget. We would point out you have a responsibility to ensure your firms client information is safe

  • Financial Firms: Rule SP-30, FINRA Rule 3110, SEC Rule 206(4) and NFA Rule 2-9
  • Healthcare providers: HIPPA
  • Retail (Credit Card transactions): PCI DSS

Defining your technology infrastructure

Cyber Insurance Agents need to understand technology to understand the risks. Defining a firms infrastructure ensures risks are identified correctly

Cyber Insurance is annual

But deserves quarterly attention. Any and all changes to a firm's infrastructure must be documented to ensure the change will not void the insuring agreement

Cyber Risks which can be covered

Data Breach Liability

Protection from damages suffered by your clients due to unintended release of private information

Security Breach Liability

Protection from damages suffered by your clients due to network security failures

Regulatory Defense Expense

Assists businesses lower the cost of complying with state and/or federal laws regarding breach notifications

Data Breach Expense

Helps pay for potential third-party costs related to identifying and preventing breaches.

Cyber Extortion Threat Expense

Covers the expense of paying extortion's to unlock your data or website.

Reputational Damage

Find assistance fixing your relationship with clients who may worry about working with your business in the future due to security issues.

Ready to set up your cyber risk insurance?

Give us a call today
(800) 666-7504

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Phone: (203) 269-9565 (local)
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Phone: (203) 265-5681 (local)
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