Cyber & Privacy Coverage
Advances in information technology over the past two decades have radically transformed the way we conduct business. This transformation has also lead to unintended consequences. Most notably, new risks associated with network and information security.
If not properly managed, these new and emerging risks can lead to catastrophe. Data security events are not only expensive to manage (according to Experian, the average costs for a breached company total $9.4 million over a 24-month period), they also significantly impact brand equity and morale.
Losses can arise from a number of sources
Losses can arise from malicious insiders, negligent insiders, hacktivists, criminal hackers and cloud or third-party compromise. Click here to read more in detail.
Will my Property & Casualty insurance cover cyber issues?
Most likely not. Traditional Property & Casualty insurance was not designed to address cyber perils and now commonly contains cyber exclusions. Standard insurance policies were designed for tangible risks and do not address perils such as hacking and denial of service attacks.
The insurance industry has recognized the need for a distinct insurance solution based on this new risk paradigm and policies can include both tailored coverage but also loss control services. IMA has access to over thirty domestic and international markets providing this specialized coverage, which can be customized specifically to your operations and areas of concern.
What are some of the available coverages?
- Data Breach Expenses: Costs associated with the actual or suspected breach of confidential information. Customary expenses include legal counsel, forensic examination, public relations, notification to impacted parties, call center and credit/identity monitoring.
- Security & Privacy Liability: Defense costs and legal liability due to lawsuits or contractual obligations due to a failure of security or safeguarding confidential information.
- Network Business Interruption: Loss of income due to downtime or degradation resulting from a failure of network security. Coverage extends to internal and external costs (extra expense) to get operations back in order.
- Cyber Extortion: Covers expenses to respond to a threat to harm or release your data as well as cover ransom payments, if necessary.
- Regulatory Expense: Defense costs related to privacy regulatory actions, including coverage for assessed fines and penalties (where insurable).
It's not a matter of if a cyber breach will happen to your company, it's a matter of when.
In addition to gap analysis and cyber risk loss modeling, IMA offers a cyber loss control website to clients that includes the latest in best practices and industry news.