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Eric Gordon
6 years ago
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4 This presentation module will give you some ideas for how to understand and communicate the value of our data security coverages to prospective members. 4

5 As you all know, when we use the term cyber liability insurance, it means different things to different people. It can be a very confusing issue to navigate. While cyber insurance contracts deal with many different issues, most will address data breaches and cyber attacks, which can happen to any business. When a business entity suffers a breach of personal identifying information, they are typically required by law to notify any individuals whose personal identifying information has been compromised in some fashion. There could be fines or penalties levied for noncompliance with notification laws or other payment card industry requirements. The entity will incur expenses directly related to the breach response, and could face legal action from parties whose personal information gets exposed. Business entities of all types today also face the threat of cyber attacks to their systems. Cyber criminals are increasingly obtaining unauthorized access to an entities systems. Hacking, malware, and denial of service attacks are on the rise. While larger entities have been facing these types of attacks for some time, smaller business entities are increasingly becoming popular targets. As a result, these entities are also at risk of being sued by parties due the lack of proper system security. 5

6 The costs associated with responding to a data breach or cyber attack are not covered under any standard insurance form. GL policies now specifically exclude cyber related losses. And Crime coverage won t respond to a data breach or cyber attack event either. 6

7 Fortunately, Nationwide has developed a coverage solution for these issues. Businessowners members can now purchase Data Compromise coverage, Identity Recovery coverage, and CyberOne coverage. Data Compromise coverage responds to a data breach, theft, or unauthorized disclosure of personal information. The policy also helps the member to be compliant with Breach Notification laws and requirements, and offers services to affected individuals such as credit monitoring. And finally, it will pay defense and liability costs for actions brought by affected individuals as a result of a breach of personal information. Limits range from $50,000 up to $1,000,000. When Data Compromise coverage is purchased, Identity Recovery coverage for key owners of the insured entity is also automatically provided. CyberOne coverage responds to events that damage or degrade data and systems. We offer both first and third party coverages. First Party Computer Attack provides coverage for unauthorized access, malware attacks, or denial of service attacks. Third Party coverage will pay defense and liability costs for a member s systems security failure, including the breach of Third Party business information, unintended transmission of malware, or denial of service attacks. $50,000 and $100,000 limits are available for CyberOne. 7

8 Cyber coverages are easy to add to a BOP policy. On this slide is a screen shot from the quote system. Just check the appropriate boxes, and you re all set. With your new Cyber coverage program, you have the opportunity to bring new and significant coverage solutions to your customer base. It s important to recognize that coverage is simple to add and that it s providing meaningful coverage limits at an attractive cost. You also need to understand that the market for cyber coverages is growing very quickly, and you are now well positioned to take advantage. In the marketplace today, it is common practice for carriers and agents alike to approach these coverages in a manner where they aggressively market it to their insureds. Many carriers automatically quote coverages for all eligible risks, and in some cases carriers are including coverage on large segments of their book. The reality today is that cyber coverage is becoming a must-have coverage vs. a nice to have. 8

9 Your program also offers members access to TWO very important resources. Any active Businessowner member, whether or not they purchase DC, IDR, or CyberOne coverages, can take advantage of these tools. The first is a data security help line. The help line provides education for members about identity theft and identity theft risks. The help line is staffed by experienced identity theft counselors who can answer questions and provide useful information and resources to identity theft victims. Members having questions pertaining to how to prepare for a breach, help in identifying a breach, or other questions pertaining to breach related best practices can receive help from the same help line. The help line can also serve as an intake for new claims. The help line number is All active Businessowner policies will receive a notice of these services as part of their policy. A second important resource for members comes in the form of a data breach risk management portal called erisk Hub. The erisk Hub portal is designed to help members understand data information exposures, help them plan and be prepared for a data breach, and establish a response plan to manage the costs and minimize the effects of a data breach. Key features of the portal include an Incident Response Plan Roadmap, Online Training Modules, Risk Management, erisk Resources, news center, and learning center. As with the Data Security help line, all active Businessowner policies will receive a notice of these services as part of their policy. You can learn more about the help line and the erisk Hub portal be view the ondemand training module, which will be available in your internal Data Security Products website. 9

10 Finally, let s talk about resources to assist associates and agents. We have developed a Data Security Products website, which will be housed internally. The site will provide information about all three product lines. You will be able to access, at your fingertips On-demand based product training Risk Management resources, including information on the help line service, instructions for accessing erisk Hub, and select links direct to erisk Hub resources Sales and Marketing resources, including a coverage/limit needs analysis tool, selling techniques, stock PowerPoint for agency communication purposes, and promotional materials 10

11 I encourage you to actively promote your Data Security products with your member clients. The coverage is very affordable. Coverage limits are meaningful and offer flexibility for your members to select options that best fit their needs. Your members have access to an Identity Recovery and Data Breach preparedness helpline to help educate them on their risk and help answer questions. They also have access to the erisk Hub risk management portal, all at no additional cost. 11

12 It s also important to point out the value of this new offering for agents. Your Data Security products provides you with an opportunity to differentiate your agency from the competition. It gives you a hook to pitch to new business by pointing out the absence of coverage for breach response. Account rounding can generate additional revenue from existing clients. We ve made it easy to add, there s no separate application required. And with the growing incidence of data breaches, identity theft, and cyber attacks, offering this coverage to all your commercial clients can help to ward off E&O claims. 12

13 For more information on this topic and other data security related topics, please check out the Data Security Products website. Thank you for your attention. 13

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