7 Provisions Needed In A Cyber Insurance Policy

LOS ANGELES (PRWEB) August 18, 2014

When Peter R. Taffae and his team at ExecutivePerils, an insurance brokerage firm with a focus on cyber insurance policies, began speaking at conferences 15 years ago, cyber security was not seen as a major business liability. However, events like the Target data breach of 2013 and the recently discovered Russian crime ring data breach of over 1 billion passwords has catapulted cyber insurance to the forefront of risk management discussions.

Though companies continue to take security measures to prevent data from being compromised, data security breaches are still significantly affecting corporate revenues. According to a study published by the Ponemon Institute in May of 2014, the average cost of a data breach increased 15 percent from $3.1 million to $3.5 million in the past year.

Unlike other types of insurance, cyber insurance does not have a standard policy form. Every insurance provider has its own wording, which companies need to tailor to fit their own needs. Although each company’s cyber insurance policies will vary, ExecutivePerils recommends including the following provisions:

•     Media Liability: This coverage protects businesses from claims that arise from the information on their website, including issues of trademark and copyright
•     Unauthorized Access and/or Denial of Service: This coverage protects companies from claims that arise from the unauthorized access of personal information by hackers, disgruntled employees, or competitors
•     e-Professional or Professional Errors & Omissions: This coverage provides protection from claims that result from any errors or omissions on a company’s website.
•     Loss of Income / Business Interruption: This coverage protects businesses when income from a web site is interrupted due to technology issues that are not addressed by traditional property insurance.
•     Cyber Extortion: This coverage protects companies from persons demanding payment to avoid proprietary information, credit cards, and other information from being released to the general public.
•     Data and Software Destruction: This coverage protects companies should their website or data be destroyed. It provides for the cost of reestablishing the content of the web site or rebuilding the website entirely.
•     Theft of Money, Securities and Other Property: This coverage protects clients from the unauthorized theft of money, securities and other information, including trade secrets, client lists and proprietary information

“In this digital age, every company-from Fortune 500 corporation to small business-runs the risk that their online data will be compromised,” said Peter R. Taffae, the CEO of ExecutivePerils. “By consulting with cyber-focused insurance brokers like ExecutivePerils and adequately assessing the unique risks that come from conducting business on the Web, companies can avoid the significant monetary cost and reputational damage that occur from online data breaches.”

For more information about ExecutivePerils and its services, please visit http://www.eperils.com.

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About Executive Perils:
Executive Perils is a national wholesale broker solely dedicated to Directors' & Officers' Liability, Employment Practices Liability, Fiduciary Liability, Legal Malpractice, Media Liability, Cyber / Network Security / Privacy Liability, Insurance Agents E&O, and over 75 miscellaneous Errors & Omissions insurance. Executive Perils currently is licensed in over 40 states and is appointed with 50+ insurance companies. Recognized nationally as one of the top brokers. Recipient of Risk Innovator® , Power Broker® (2009 & 2011.) For more information about ExecutivePerils and its services, please visit http://www.e-perils.com.