While there is a continued focus on data breach as the primary cyber risk exposure, other types of cyber incidents call for Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage) with significantly broader coverage. Comprehensive Cyber Risk Insurance should cover other exposures such as business interruption, ransomware and crime. And a growing exposure, third party liability arising from cyber attacks. Some commentary and examples:
- We noted two years ago that Target was facing liability claims from its breach (here).
- 21st Century Oncology suffered a breach of 2 million patient records in October 2015, and is now is faced with 16 class action lawsuits (here, here & here).
- Yahoo is facing multiple class action lawsuits from what was the biggest breach ever – an estimated 500 million personal records (here & here), only to be upstaged by a bigger Yahoo breach (here).
- A deceptive business email compromise attack on a third party investment services company has caused an investment firm to suspend its operations and file a lawsuit (here & here).
What to do? Corporate leaders can significantly reduce, if not eliminate, their cyber liability by actively engaging in aggressive cybersecurity risk management. But risk management is only part of the solution, and will not addresses liability costs and related defense costs, such as forensic analysis, in the aftermath of a breach (see here).
Are your clients getting comprehensive Cyber Risk Insurance coverage? Tennant Risk Services delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of comprehensive Cyber Risk Insurance. Let us know how we can help you deliver comprehensive Cyber Risk Insurance to your clients.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber Risk).