Cyberliability / E-Commerce / IT Professional
Liability
CYBERSECURITY – Insuring Cyber Exposures for Businesses of All Kinds
NEWS FLASH :
Time Warner:
lost unencrypted computer backup tapes containing sensitive
information from as far back as 1986 about 600,000 people, including
Social Security numbers
Ohio University:
faces class-action filed by two alumni whose personal data were
among those accessed when hackers broker into OU’s computer system
DSW Shoe Warehouse:
announced that thieves had accessed 1.4 million credit card numbers,
checking account numbers and driver’s license information of about
96,000 customers
American International Group (AIG),
Indiana Office of Medical Excess, LLC: computer server stolen on
March 31 containing personal information, including names, social
security numbers, birth dates and some medical and disability
information 930,000
TJ Maxx:
systems breached by a hacker who pilfered credit and debit card
numbers as well as driver’s license numbers. A class action lawsuit
was filed against TJX Cos., accusing them of negligence for failure
to maintain adequate security of customer credit and debit card data
and for failure to publicly announce the intrusion for a month.
CRIMES LIKE THESE HAPPEN MORE OFTEN THAN YOU THINK!
ARE YOU AWARE THAT…
Privacy legislation in some states may
require notification of every affected individual?
The costs associated with handling these
incidents (notifying customers, changing account numbers,
subscribing to credit monitoring services) can be significant – up
to $30 or more per customer, multiplied by potentially thousands, if
not millions, of customers?
Your clients don’t even have to be the
target of hackers – old-fashioned events like loss of physical
property (computer tapes) may result in identity theft.
CYBERLIABILITY
insuring clause provides coverage for:
DISCLOSURE INJURY,
including suits by customers of your clients arising from a system
security failure that results in the unauthorized access to or
dissemination of private information on the Internet
CONTENT INJURY,
including suits arising from intellectual property infringement,
trademark infringement and copyright infringement
REPUTATIONAL INJURY,
including suits alleging disparagement of
products or services, libel, slander, defamation and invasion of
privacy
CONDUIT INJURY,
including suits arising from system security
failures that result in harm to third-party systems
IMPAIRED ACCESS INJURY,
including suits arising from a system security
failure that results in your clients’ systems being unavailable to
customers
OPTIONAL INSURING CLAUSES:
BUSINESS INTERRUPTION,
including first dollar extra expense
E-THREAT,
including the cost of a professional negotiator and ransom payment
PRIVACY NOTIFICATION EXPENSES,
including the cost of credit monitoring
services for affected customers
E-VANDALISM EXPENSE,
even when the vandalism is caused by an
employee
CRISIS MANAGEMENT AND REWARD EXPENSES,
including the cost of public
relations consultants
CYBERLIABILITY - For IT Professionals
According to a recent the Wall Street Journal article, Hershey
flipped the switch on a $112 million computer system that was supposed
to automate and modernize candy orders. A computer glitch occurred
and candy orders never made the store shelves in time for Halloween!
IT Professionals need protection against liability when a job goes
wrong. Broad coverage is available for computer security, web page
development, custom software development and internet access providers.
Coverage for unauthorized or malicious access to computer systems is
available and will respond to:
Virus Attacks
Hacker Attacks
Loss of Data, Systems and Programs
Loss of Intellectual Property and Trade Secrets
Damage caused to a third party's network
Business Interruption
Protection is available for entities whose operations include the
dissemination of information utilizing on-line technology:
Internet Access Providers
Internet Content Providers
Web Site Developers, Consultants and Designers
Web Hosts and Owners
Chat Rooms and Bulletin Boards
Search Engine Providers
Software Developers
Intellectual Property Coverages available for:
Copyright
Trademark and Service Mark
Patent Infringement Abatement - protects the patent holder in
the enforcement against an infringer
Patent Defense Cost Reimbursement - protects the insured in the
defense of a patent infringement change by a third party.
MSM Website revision – CyberLiab/CyberSec. Page 03/07 |
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