This document provides an overview of data breaches and cyber liability insurance. It defines a data breach as the loss, theft, or accidental release of personally identifiable information. The most common causes of breaches are unauthorized computer access, stolen laptops/disks, stolen credit card numbers, and lost paper files. Cyber liability insurance provides coverage for costs associated with notifying individuals of a breach, credit monitoring services, legal/forensic services, crisis management, and defense against third party lawsuits. The insurance also includes loss control services to help businesses prevent breaches and properly respond if one occurs.
2. OVERVIEW – DATA BREACH DEFINED
Loss, theft, accidental release or accidental publication of Personally
Identifiable Information (PII) including:
• Name & Addresses
• Dates of Birth
• Social security numbers
• Bank account numbers
• Credit Card detail
• Driver’s license numbers
• Patient history and any medical records
3. OVERVIEW – MOST COMMON BREACH OCCURRENCES
• Unauthorized Computer access – data management system has be
hacked
• Stolen or lost laptops or computer disks
• Stolen credit card information
• Stolen or lost paper files
4. OVERVIEW – WHO NEEDS DATA BREACH COVERAGE
Any business that handles or stores private information of customers, patients or
employees.
Key industries include:
• Professional Services: Lawyers, Accountants, Insurance Agents, anybody in the Financial
Service Industry
• Healthcare Providers
• Retailers & Restaurants based on the significant number of debit and credit card
transactions
5. INSURANCE IS NOW AVAILABLE
Coverage includes…
• 1st Party costs (our initial out of pocket expenses)
• 3rd Party actions (liability from any negligence)
• Risk Management Services
6. COVERAGE DETAILS – 1ST PARTY RESPONSE
EXPENSES
Coverage can include…
• Notification Expenses (additional labor hours and mailings)
• Services for the impacted individuals (credit monitoring, help lines)
• Legal & Forensic Services (who done it)
• Good Faith Advertising and Crisis Management (we’re sorry)
7. COVERAGE DETAILS – 3RD PARTY DEFENSE &
LIABILITY EXPENSES
When action is brought against you from a third party – Data Breach coverage would
include.
• Defense Costs
• Awards
• Available Limits: most companies start at $50,000
8. LOSS CONTROL SERVICES
Hot lines and websites are normally provided to manage the risk of loss.
• Tips and resources to help businesses minimize the chance for a breach and tips on protecting
personal information
• Detail provided for any statutes regulating businesses responsibilities
• Information on how to create a data breach incident response plan
• Guidance on what needs to be done if a breach occurs
9. Feel free to contact me with any questions…
Dan Zeiler
dan@zeiler.com
Direct Line: 708.293.5500
Zeiler Insurance Services, Inc.
12159 S. Pulaski Road
Alsip, IL 60803
www.zeiler.com