Cyber Liability A New Must Have Coverage for Your Soccer Organization Presented By: Pat Pullen Jeanne Zabuska President Underwriting Manager February 17, 2012
Why do you need Cyber Liability? Have a web site? Take Membership Registrations on line? Have an on-line store? Blog? Facebook page? Twitter? Conduct background checks? Going paperless? And how many times have you grabbed a photo off the Internet for a presentation or brochure?
What is Cyber? What does the term cyber mean??? Refers to the use of computers, internet, computer networks and electronic information databases to include the associated privacy related issues Data is an organization s most valuable asset. IMPACTOF A DATA BREACH CAN BE SIGNIFICANT!
What is a Data/Privacy Breach? A data breach is a security incident in which sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. Data breaches may involve financial information such as credit card or bank details, personal health information (PHI), Personally identifiable information (PII), trade secrets of corporations or intellectual property.
Cyber Coverage Responds to Data Breaches Caused By: Hackers Rogue Employees Loss or Theft Staff Mistakes Business Interruption
Cyber Exclusions in Standard Policies Standard General Liability Financial loss from identity theft does not fit policy definition of bodily injury, property damage or personal and advertising injury No coverage provided for 1 st party cyber claims Standard policies contain an electronic data exclusion
Cyber Exclusions in Standard Policies Continued Exclusionary coverage wording under personal and advertising injury i.e. definition of advertisement, knowing violation of rights of another, material published with knowledge of falsity, infringement of copyright, patent, trademark, electronic chat room or bulletin boards
Cyber Exclusions in Standard Policies Continued Standard Commercial Property Provides coverage only for tangible property. Electronic data is considered an intangible asset
Cyber Coverage Parts 1 st Party Loss Losses Suffered by the Entity Loss of digital assets Non-physical business interruption Cyber extortion Cyber terrorism Security event costs 3 rd Party Loss Entity Liability to Third Parties Network security & privacy liability Employee privacy liability Electronic media liability
Cyber 1 st Party Coverage Part Loss of Digital Assets Explanations Pays cost to recover & restore loss of information stored on your server due to an accident, computer attach, administrative mistake Non-Physical Business Interruption Pays for the extra expense incurred to avoid or minimize suspension of business Cyber Extortion Reimburses for expenses incurred from a credible extortion threat that includes a demand for extortion of monies
Cyber 1 st Party Coverage Part Explanations Continued Cyber Terrorism Reimburses for income loss and interruption expenses due to the total or partial interruption or failure of the computer system caused directly by an act of terrorism Security Event Costs* Reimburses costs for notification of a security/privacy breach i.e. credit monitoring, customer notification costs, public relations costs *Represents highest frequency of claims
Cyber 3 rd Party Coverage Part Explanations Network Security & Privacy Liability Pays damages due to your legal liability from your acts, errors or omissions or acts of others (vendors) that result in a security Employee Privacy Liability Provides liability protection due to a privacy breach of an employee s personally identifiable information in either electronic or paper format
Cyber 3 rd Party Coverage Part Explanations Continued Electronic Media Liability Provides personal injury protection (libel, slander, defamation of character, copyright/trademark infringement, invasion of privacy) due to the electronic display on your internet site
Underwriting/Risk Management Application serves as a risk management tool in determining adequacy of your privacy controls and media liability controls Special attention to key underwriting issues affecting acceptability Implementation of a formal/written privacy policy Firewall and virus protection programs to include regular backups
Underwriting/Risk Management Continued More key underwriting issues affecting acceptability Criminal background checks on employees Document destruction and retention policy Encrypt personally identifiable information when downloaded onto portable media
Typical Limits of Coverage $1,000,000 Aggregate Limit for1 st & 3 rd Party Coverage Parts $ 500,000 Security Event Costs $ 250,000 Customer Notification Expense Limit $ 250,000 Public Relations Expense Limit *Note: 1 st & 3 rd Party Coverage canbe purchased separately
Be protected when HE comes after you!!! Questions? Comments? Thank You! -Pat & Jeanne