With everything going online, a cyber event is becoming more and more apparent even with bigger corporations where everyone's working remotely. Some of the major corporations have been hitting mainstream media. But a lot of times, businesses that are affected aren't hitting the news- these are the small to medium businesses.
And for most small businesses, a cyber event is catastrophic. They put everything online, they do payment cards and anything like that. But just one cyber event can put you right out of business.
So this September 2021, we bring you Team Central Jersey’s Anthony Guzman with the topic “All About Cyber Insurance” to discuss cyber insurance - what it is and what it covers.
Cyber Insurance - Why is it important?
- Cyber events are occurring more frequently, and all types of organizations are at risk.
- Breach events are more expensive and often lead to costly lawsuits, various fines, and event response costs.
- Small and medium-sized businesses have high bankruptcy rates after a cyber event
Top 4 Cyber Threats
- Data Breach - Protected and confidential data have been stolen and used by unauthorized individuals.
- Business Interruption - Attack that directly or indirectly causes your business to stop or break your system down
- Cyber Extortion - A cyberattack that locks in your system and asks for a ransom to avert or stop the attack.
- Social Engineering - “Business Email Scams” that use deception to manipulate individuals into divulging confidential or financial information.
Why is cyber insurance important even for small businesses?
While most small businesses will tell themselves “what's a hacker going to do with me, why is he really gonna come after my business as opposed to a bigger business?”
The reality is, smaller and medium businesses are prime targets because they're easy to hack. Hackers can go in, hack on your system, put a ransom on you very quickly and so that's why you need cyber insurance even though you're a small business.
This is where PrivaSafe comes in.
PrivaSafe is a product proprietary to USI Insurance Services about cyber insurance so it's not product-driven but process-driven so if you want to know the process of what type of insurance and what it covers, then this article is perfect for you.
USI’s Proprietary Cyber Coverage offers broader than market terms and pre and post-breach services at competitive pricing.
- Companies are increasingly at risk of experiencing a cyber event
- A cyber event can be financially catastrophic for most organizations
- Standard cyber policies can vary greatly and are often issued without many of the available coverage enhancements
- USI’s PrivaSafe provides pre and post-breach coverage with market-leading terms.
Impact and Benefits
- Avoids the inherent coverage gaps and weaknesses that can lead to uninsured losses and expenses.
- Pre-breach services can help organizations avoid costly losses and expenses.
- Coverage enhancements and services that protect a company’s assets and reputation.
- Typically, these enhancements can be had at no additional premium
Who Is it for?
- A company that holds Personally Identifiable Information (PII)
- A company that holds Personal Healthcare Information (PHI)
- A company that Manages a Network
- A company that accepts Credit Cards
Fact: Any company can be exposed to cyber events.
There are different types of coverage: First-party coverages, third-party coverages, and notification cost. Below is the list of coverage descriptions for each type.
Coverages for 1st Party Exposures
Privacy Regulatory Expenses and Penalties
Business Interruption Coverage
Network Recovery Protection
Cyber Crime (including Social Engineering)
Reputational Harm Coverage
Property Damage due to a Cyber event
Coverages for 3rd Party Exposures
Security and Privacy Liability Coverage
Multimedia Liability Coverage
No Retroactive Date Restrictions
Defense Costs Outside Limits
Expanded Definition of Insured/Additional Insured
Trade Secrets Liability Carveback
Deleted or Modified Hammer Clause
Application Limitation to this policy or 12-month look back
Market Leading Sub-limits: TCPA Defense, Costs, Court Attendance, and Reward sub-limits
Internet of Things (IoT) exposures
Bodily Injury due to a Cyber Event
Coverages for Notification Costs
Breach Event Response Costs Coverage
Breach Notification Costs Outside Limits
If you ever experience a cyber event, whether it's pre-beach events or post-breach events, USI will help your business back up and running. And with the breach costs and the fines and all the regulatory actions that can be taken to you, USI will take a look at your full exposures.
Cyber insurance is an emerging place and a lot of people don't know where it's going and it’s very hard for businesses to get it. So if you know small businesses that are emerging and are really starting to mature and scale up, have them speak with me or look at cyber insurance as a way to protect their business in the future because we don't know what is heading this is something that we're in uncharted territories.
Need to just take a look at what's going on and what the options are? Click here and feel free to reach out to me.