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Information Security and Privacy Insurance



Information security is an expanding issue, and not ensuring that confiedential data is protected can cause major reporcussions for a company.
Businesses with Networks and Websites, and especially those that collect customers personal information are at risk for substantial financial loss because a breach can easily occur in the security of these information systems.

ARM can help protect against this risk..........

Network Risk Insurance Application


COVERAGE COMPONENTS

Network Security & Privacy Insurance - Including coverage both online and offline information, virus attacks, denial of service, HIPPA coverage, full regulatory defense coverage, regulatory fines/penalties coverage and more.

Electronic Media Insurance - Including Copyright/Trademark Infringement, Libel/Slander, advertising, false advertising, plagiarism, personal injury, and more.

Customer Notification Costs Insurance - Inludes all necessary legal PR, advertising and postage expenses incurred by the insured to notify third persons of a breach of information.

Data Recovery Costs Insurance - All reasonable and necessary sums required to recover and/or replace data that is compromised, damaged, lost, erased or corrupted.

POLICY HIGHLIGHTS

  • Worldwide coverage - claims can be brought outside of the U.S.

1. Full Limits are available for Regulatory Defense of a privacy claim (not sub-limited)

2. Property Damage exclusion does not include electronic data

3. Final Adjunction language for Defense for allegations for fraud or intentional wrongdoing

5. Coverage continues through bankruptcy

6. Soft Coorporation Clause 50/50 of both loss and defense costs

7. Acts committed by rogue employees are covered

8. Extended Reporting Period is available up to 3 years - but additional coverage may be available upon request

9. Limits to $20,000,000

10. Minimum SIR $2,500.00

11. Minimum premiums as low as $1,250.00

 

 

 

 

 

 

 

 



CYBER LIABILITY Claims Scenarios

Claims Scenario #1
  • A financial institution employee's laptop, containing sensitive client data, went missing. Multiple lawsuits are pending by individuals whose data has been compromised, and a Gramm-Leach-Bliley (GLB) regulatory investigation is ongoing.

Total defense costs exceeded $700,000.

  • Claims Scenario #2
  • A well-known specialty company was sued by customers claiming that the store's online shopping website was deceptive and confusing in regard to shipping costs. Claimants alleged that the site's "shopping cart" feature frequently charged customers for 'rush' shipping without the customers' prior knowledge or approval.

The suit required the company to issue refunds of overcharges to more than 1,500 customers.

  • Claims Scenario #3
  • An online retailer's network was hacked by an unauthorized user and customers' credit card information was exposed.

A class action lawsuit was recently filed against the retailer.

  • Claims Scenario #4
  • An online manufacturer inaccurately compared its product to a competitor's product, triggering a lawsuit claiming misrepresentation and unfair trade practices.

Defense expenses already exceeded $375,000.

  • Claims Scenario #5
  • An online business process software (ASP) inadvertently provided access to a non-authorized user. Confidential customer contact information was exposed to other unauthorized users. A regulatory investigation for a data privacy incident could lead to a fine or penalty.

Private suit for loss of, or damage of, data settled for $875,000. Defense expenses incurred in excess of $275,000.

  • Claims Scenario #6
  • A designer's apparel company included the names of competing designers in its website's metatags ("invisible" keywords inserted in the page code), hoping to attract customers of competing brands in search engine listings. The designer was sued by the competitors who claimed that use of their trademarked names in metatags was inappropriate and unauthorized use of trademarks, and deceptive to consumers.

Customers sued the company for several million dollars in damages.

  • Claims Scenario #7
  • A company's web-based account management service was unavailable for a period of three days, after a disgruntled client launched a denial of service attack on the site somewhere in Europe. During that time period, customers were unable to access the system to make payments, execute transactions, or check account balances.

Customers sued the company for more than $750,000 in damages.

  • Claims Scenario #8
  • A computer engineer who had been hired to update the computer system of a sheet metal company was fired due to imcompetence. When the company refused to pay him, the engineer hacked into the company's computer system and deleted its files.

The company was forced to pay over $95,000 to rectify the damage.

  • Claims Scenario #9
  • A company's e-mail system inadvertently transmitted a malicious virus to more than 1,500 clients and recipients, causing widespread loss of data, among other damages.

The company was sued by the receiving firms for failing to detect and prevent this birus transmission, claining losses which totaled more than $3.1 million.

  • Claims Scenario #10
  • An energy company was sued by an ex-employee for breach of privacy, when comments about the ex-employee were circulated via the internet.

The company was forced to pay over $400,000 in damages.