NAS Insurance Services Inc. has launched an insurance coverage that pays companies for lost revenue in the event of a cyber breach. The new coverage, called BrandGuard, is a component of NetGuard Plus Cyber Liability insurance. It is designed to provide organizations an extra layer of financial support while they work to restore their customers’ trust following a data security breach.
“As more small and mid-size businesses are distracted by cyber attacks and exposure of their customers’ or patients’ personal information, they may have a temporary interruption of income,” says Michael Palotay, senior vice presdient of underwriting at NAS. “BrandGuard is designed to provide financial support to the business and help the organization get back on its feet.”
A recent study by the Ponemon Institute found that 15 percent (of customers) said they would terminate their relationship and 39 percent said they would consider ending the relationship in response to being notified of a breach by an organization.
“An effective recovery from a cyber breach is essential to retaining customers,” Palotay said.
BrandGuard is the newest component of NetGuard Plus, NAS’ cyber liability insurance program that provides protection for privacy-related exposures as well as breach response services including legal, IT forensics, public relations, customer notification, credit monitoring, and identity restoration.
NAS is an independent underwriting manager of specialty insurance with full binding authority to underwrite on behalf of Lloyd’s of London and other carriers. It is based in Encino, Calif.