Cyber/Privacy Coverage

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Kathryn Simon
5 years ago
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1 Cyber/Privacy Coverage

2 COVERAGE REVIEW COVERAGE ISSUE COVERAGE GRANTS Third Party Coverage Options Network Security Liability Privacy Liability Professional Liability Technology E&O Website Media Liability Regulatory Defense Coverage Regulatory Fines/Penalties Coverage PCI Fines/Penalties Coverage First Party Coverage Options Network Interruption Business Income Dependent Vendor Network Business Interruption Network Interruption Extra Expense Coverage Data Loss/Restoration Coverage Cyber Extortion Coverage Breach Notification Coverage Crisis Management Coverage Brand Impact Protection Credit Monitoring Coverage Legal Costs Forensic Expenses DEFINITIONS Definition of Data or Record Digital/Electronic Records Written Records/Paper Records Types of Records Covered Personally Identifiable Information (PII) Protected Health Information (PHI) Corporate Confidential Information 2

3 Definition of Crisis Management/Notification Costs Public Relations Firm Expenses Law Firm Expenses Forensic Experts Expenses (Security Consultants, etc.) Costs to Notify Individuals Credit Monitoring Expenses Credit Counseling Services Credit Restoration Services Call Center Costs Identity Theft Resolution Services Definition of Breach Notification Local, State, Federal Law Requirement Foreign Law Requirement Voluntary Notification when no law exists Network Security & Privacy Act Breach Includes: Acts of Insured while in their Care, Custody or Control Acts of Third Parties while in their Care, Custody or Control Unintentional Violation of Insured's Privacy Policy Definition of Claim Written Demand Civil Proceeding Arbitration Proceeding Civil, administrative Written request to toll or wave any statute of limitations Regulatory Proceedings/Regulatory Actions Definition of Loss Defense Costs Damages/Settlements Punitive Damages w/most Favorable Venue Regulatory Restitution Funds Consumer Redress Funds Regulatory Fines/Penalties Pre & Post Judgement Interest Definition of Insured Company 3

4 Subsidiaries Directors, Officers, Partners, Managers Spousal/Domestic Partner Employees Employees Full time/part time Temporary Volunteers Seasonal Leased Employees Independent Contractors Technology Professional Services EXCLUSIONS Fraud/Dishonesty Exclusion "In Fact" Wording "Final Adjudication" wording Final Non-Appealable Adjudication Wording "Deliberate" or "Intentional" wording "Willful Violation of Law" wording Carve-back for acts of Rogue Employee RICO Exclusion Bodily Injury/Property Damage Exclusion "based upon" wording "For" wording Mental Anguish/Emotional Distress Carve-back for Privacy Breach or Media Liability Personal Injury Exclusion Network Security/Privacy Breach Carve-back Funds Transfer Exclusion ERISA Exclusion Network Security/Privacy Breach Carve-back SEC Exclusion Network Security/Privacy Breach Carve-back D&O Claim Exclusion Insured vs. Insured Exclusion Carve-back for claims by Employees for breach of Employee PII/PHI 4

5 Intentional Failure to disclose loss of PII/PHI Severability Provided Acts of Execs imputed to all Insured Unauthorized Collection/Failure to Notify of PII/PHI Prior Knowledge of Security Deficiency Exclusion Failure to Implement/Maintain/Safeguard Exclusion Carve-back for Modified to "reasonable" attempt wording Anti-Trust Exclusion Network Security/Privacy Liability Carve-back Unfair/Deceptive Trade Practices Network Security/Privacy Liability Carve-back Patent/Intellectual Property Exclusion Media Liability Carve-back Trade Secret Exclusion Network Security/Privacy Liability Carve-back Breach of Contract Exclusion Carve-back for PII or Third Party Corporate Information pursuant to Confidentiality Agreement Unencrypted Portable Device Exclusion PCI Non-Compliance Fines/Penalties Exclusion Professional Services Exclusion Government Action Exclusion Regulatory Proceeding Carveback Electrical Failure/Power Interruption Exclusion Insureds Negligence Carveback Inadequate Software Exclusion Expiration or Withdrawal of Technical Support by a Software Vendor Exclusion Minimum Required Practices Exclusion Wireless Network Exclusion Severability of Exclusions No Severability Provided Severability only appllies to Fraud/Dishonesty & Personal Profit Exclusions Acts/Knowledge of Senior Execs Imputed to Entity OTHER TERMS/CONDITIONS Defense & Settlement 5

6 Duty to Defend Choice of Counsel Deductible/Retention Provision Deductible applies to each Insuring Agreement separately Only one Deductible applies if multiple Ins. Agreements triggered Notice of Claim Provision 30/60/90 Days w/in Policy Period 30/60/90 Days Post Policy Period Senior Exec Notice/Control Group Trigger Newly Created/Acquired Subsidiaries 10% Revenue Threshold 15% Revenue Threshold 20% Revenue Threshold 25% Revenue Threshold 30 Day Window 45 Day Window 60 Day Window 90 Day Window Extended Reporting Period 1 year ERP only 1, 2 & 3 year ERP offered Other ERP Options Representation & Severability Knowledge of Insured Persons not imputed to any other Insured Person Knowledge of Insured Persons not imputed to any other Insured Person or Entity Knowledge of Senior Executives imputed to Entity Knowledge of Signor voids coverage for all Insureds Material Change in Risk Provision Settlement Provision/Hammer Clause Full Hammer Clause 50/50 Velvet Hammer Clause 70/30 Velvet Hammer Clause 75/25 Velvet Hammer Clause 85/25 Velvet Hammer Clause Hammer Clause Deleted 6

7 Cancellation/Non-Renewal Non-cancellable, except non-payment or premium Insurer downgrade pro-rata cancellation Territory Worldwide w/suits brought in U.S./Canada Full Worldwide Coverage MISC PROVISIONS Risk Management Services Provided Early Claim Resolution Incentive Prior Acts Coverage Subpoena Expenses The foregoing analysis only encompasses a review of the major policy provisions. The terms and conditions contained in these policies are different; as such, it is incumbent upon the agent and Insured to review and understand the specific terms provided in each policy. Further this analysis is not intended to serve as a warranty or guarantee that the terms provided in each policy are the same. 7

Coverage D002 V2 D002 V3 +/=/- Notes. Non-Profit Liability Insurance. Coverage D002 V2 D002 V3 +/=/- Notes

Wording Comparison Coverage D002 V2 D002 V3 +/=/- Notes Specialty Solutions Non-Profit Liability Insurance Coverage D002 V2 D002 V3 +/=/- Notes Insuring Agreements Insuring Agreements: A - Insured's Liability