ntxissacsc5

1. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
The Essentials of Cyber Insurance:
A Panel of Industry Experts
Patrick Florer
Risk Centric Security, Inc.
Co-Author: NetDiligence
Cyber Claims Report &
Ponemon Contributor
Mark Knepshield
Insurance Broker,
Specializing in Cyber
McGriff, Seibels &
Williams
John Southrey
Director of Prod.
Development,
Specializing in Cyber
Tex. Med. Liab. Trust
Shawn Tuma
(Moderator)
Cybersecurity & Data
Privacy Attorney
Scheef & Stone, LLP

2. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Speakers
2
Patrick Florer
CTO and Cofounder
Risk Centric Security, Inc.
• Information technologist for 38 years
• Database designer/statistical analysis in evidence-
based medicine for 17 years in parallel
• Member, RIM Council (Responsible Information
Council), Ponemon Institute, since 2009
• Distinguished Fellow, Ponemon Institute, since
2009
• Co-author and co-analyst of the 2016 & 2017
NetDiligence© Cost of Cyber Claims report (along
with Heather Goodnight-Hoffmann)

3. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Speakers
3
Mark Knepshield
Senior Vice President
Financial Services Division
McGriff, Seibels &
Williams, Inc.
• Mark specializes in cyber liability insurance placement
and claim handling.
• Mark assists clients on implementing strategic incident
response and breach preparedness plans.
• Mark’s experience includes cyber insurance claim
workouts on a number of high profile breaches and as
well as the expected financial impact to companies.
• Mark is a frequent speaker at insurance industry and
financial services related events around the country.
• McGriff Seibels & Williams, Inc. is a subsidiary of BB&T
Insurance Services, the 5th largest insurance brokerage
house in the United States.

4. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Speakers
4
John Southrey,
CIC, CRM
Director, Product
Development & Consulting
Services
Texas Medical Liability
Trust
• Over 37 years in insurance industry and is a Certified
Insurance Counselor and Certified Risk Manager.
• John leads the development and marketing of
standalone cyber liability and technology errors &
omissions liability insurance for medical-related firms
and law firms at TMLT.
• TMLT (Texas Medical Liability Trust) (www.tmlt.org) is
the largest medical professional liability insurer in
Texas.
• In 2004, started with TMLT and worked in the Claims
dept as claims supervisor, in the Sales department as
a Sales Manager.
• A prolific writer with many published works.

5. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Overview
• Frequently used insurance terminology
• Who are the key players?
• Role of cyber insurance in risk mgt?
• Why do companies need cyber risk insurance?
• What kind of cyber risk coverage is available?
• What are specific issues to look for in cyber risk insurance?
• What is the process for obtaining cyber risk insurance?
• How much coverage do you need?
• What is the process for making a claim on your policy?
• What are the most common mistakes insureds make?
• What are the most common claims costs for items in a breach?
• What are the most common things not covered?
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6. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Frequently used insurance terminology
• CGL – Commercial General Liability insurance
• D&O – Directors’ and Officers’ insurance
• E&O (PLI/PII) – Errors and Omissions (sometimes called Professional
Liability or Professional Indemnity Insurance)
• K&R – Kidnap and Ransom
• ISO – the Insurance Services Office
• Policy
• Risk / Peril
• Retention
• Limits / Sub-limits
• Exclusions
• Re-insurance
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7. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Who are the key players?
• The Insured
• The Broker / Agent
• The Underwriter
• The Actuary
• The Insurer / Carrier
• The ISO – the Insurance Services Office
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8. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Role of cyber insurance in risk mgt.
In March 2016, the Cybersecurity and Infrastructure Protection Subcommittee
(part of the U.S. Department of Homeland Security) at a hearing titled “The Role
of Cyber Insurance in Risk Management” noted the following:
“The purpose of the hearing was to examine the potential opportunities to
promote the adoption of cyber best practices and more effective
management of cyber risks through cyber insurance.”
https://homeland.house.gov/hearing/the-role-of-cyber-insurance-in-risk-management/
In March 2015, at a U.S. Senate hearing on “Cyber Insurance” it was also noted:
“Simply engaging in the process of seeking cyber insurance coverage can
assist businesses to develop the correct approach to mitigate risk. Insurance
can bring all relevant stakeholders in an organization together, encouraging
an enterprise-wide risk management approach.”
http://www.propertycasualty360.com/2015/03/20/cyber-insurance-in-the-spotlight-senate-mulling-fe
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9. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Why do companies need cyber risk
insurance?
• Do traditional CGL or other policies usually cover cyber risk or
cyber-caused losses?
• Are cyber risks usually excluded from non-cyber policies?
• Do only big companies, small companies, or “tech” companies
need cyber risk coverage?
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10. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What kind of cyber risk coverage is available?
• What kind of cyber risk coverage is available?
• How expensive is this coverage?
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11. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What kind of cyber risk coverage is available?
First-Party Coverages:
• Privacy Breach Response Costs
• Network Asset Protection
• Cyber Extortion & Cyber Terrorism
• Cyber Crime
• Reputational Harm
• Corrective Action Plan Costs
Third-Party Coverages:
• Multimedia Liability
• Security and Privacy Liability
• Privacy Regulatory Defense and Fines & Penalties
• PCI DSS Liability
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12. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What are specific issues to look for in cyber risk
insurance?
• Social engineering?
• Computer fraud / crime language?
• Contractual liability, such as indemnification agreements?
• Pre-existing “issues”?
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13. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What is the process for obtaining cyber risk
insurance?
• What is the process for obtaining cyber risk insurance?
• Application / underwriting process
• Should IT / infosec be involved to ensure accuracy?
• Risk assessments
• What do they look like?
• Do they impact premiums?
• Prior incidents
• Do they impact premiums?
• Must they be disclosed?
• Latest tech tools, services, gimmicks
• Do they impact premiums?
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14. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
How much coverage do you need?
• How much coverage does your company need?
• How do you calculate your company’s risk exposure?
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15. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What is the process for making a claim on your
policy?
• What is the process for making a claim on your policy?
• Is this like the first, second, or third call you need to make after discovering an
incident?
• List of approved panel providers
• Attorneys
• Forensics
• Credit product / notification logistics
• Public Relations
• Timeliness
• Notice
• Carrier may not pay for services provided without prior approval
• Appoint legal counsel as breach guide
• Process
• Any input from the insured on who represents them?
• Can this be addressed when obtaining coverage, if they have counsel they trust?
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16. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What are the most common mistakes insureds
make?
• What are the most common mistakes you see insureds make that
jeopardizes their coverage?
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17. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What are the most common claims costs for items
in a breach?
• In an incident, what are the most common claims costs for things
such as:
• Forensics
• Remediation
• Public Relations
• Notifications / Credit Product / Logistics
• Legal
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18. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
What are the most common things not covered?
• What the most common things that insureds seem to expect would
be covered but, in reality, are not covered?
• Warranties or exclusions in relating to the Insured’s failure to
maintain the security of its computer network in accordance with
industry standards or “best practices,” internal policies, and/or
regulations. (These exclusions can defeat the purpose of the cyber
insurance.)
• No coverage for unencrypted mobile devices.
• What lessons should this teach them?
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19. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
Questions?
Patrick Florer
CTO and Cofounder
Risk Centric Security, Inc.
214.828.1172 (office)
214.850.8539 (cell)
www.riskcentricsecurity.com
Mark Knepshield
Senior Vice President
Financial Services Division
McGriff Seibels & Williams
Direct: 469-232-2126
Mobile: 303-885-5843
John Southrey
Director, Product Development & Consulting
Texas Medical Liability Trust
P.O. Box 160140, Austin, TX 78716-0140
direct: 512-425-5976 | cell: 512-589-4543
www.tmlt.org
Shawn Tuma
Scheef & Stone, L.L.P.
Cybersecurity & Data Privacy Attorney
2600 Network Blvd., #400, Frisco, TX 75034
Direct: 214.472.2135 | Mobile: 214.726.2808
Email: shawn.tuma@solidcounsel.com
Blog: www.BusinessCyberRisk.com
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20. NTXISSA Cyber Security Conference – November 10-11, 2017
@NTXISSA #NTXISSACSC5
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Thank you