Cyber Crime Liability Policy
Today’s cyber risk landscape provides daily evidence that traditional security practices no longer provide the level of protection that is required against today’s sophisticated attackers.
The methodology adopted is one where hackers harness thousands or millions of computers to repeatedly ping a site, overwhelming its servers. Typically the hackers have planted a virus on those computers in advance, and at the appointed time, the virus wakes up and directs the computer to follow its instructions. In the case of the Dyn attack, the hackers had indeed planted such a virus, but not on traditional computers or tablets. Instead, they targeted consumer products with internet connectivity, including baby monitors and “smart home” systems, commonly referred to as the Internet of Things (IoT). Cyber insurance can pay out millions of dollars to cover the cost of data breach liability.
To protect your business as a stable financial footing should a significant security event occur? A robust cyber insurance policy can help businesses weather the storm more effectively when a data breach or network security failure has occurred.White collar crime is a reality in today’s business world. And the best protection against this threat is a strong system of internal controls allied with the robust, comprehensive coverage.
The policy covers the following:
- Employee Theft Coverage:
- Loss of money, securities or other property by theft or forgery by an identifiable employee of the Insured.
- Premises Coverage:
- Losses from destruction, disappearance, wrongful abstraction or computer theft of money or securities from the Insured’s premises by third parties.
- Transit Coverage.
- Depositors Forgery Coverage.
- Computer Fraud Coverage.
- An extension to cover losses sustained by the Insured due to computer fraud by a third party including cover for expenses incurred by the Insured due to a computer violation.
Exclusions under the Policy:
- Losses due to war, civil war, insurrection, rebellion, revolution, military action or governmental intervention or expropriation.
- Losses caused or contributed to by the theft or fraud of the Insured’s partner.
- Loss involving the cost of reproducing any information contained in lost or damaged manuscripts, records, accounts, etc.
- Expenses incurred by the Insured in establishing existence or amount of any covered loss.
- Loss of income.
- Loss of trade secrets.