Zurich North America Commercial enhanced and expanded a product that helps businesses manage the financial and reputational risks of cyberspace – the Zurich Security and Privacy Protection Policy.
The consequence of data breaches cost today’s business owners an average of $6.6 million per incident, and this cost is on the rise, according to a study conducted by the Ponemon Institute titled, “Fourth Annual US Cost of Data Breach Study.”
Zurich’s policy is designed to help pay for the costs incurred while trying to recover from a data breach and to help companies protect against the potential liabilities arising out of or resulting from cyber-related incidents. In addition to data breaches, the policy provides coverage for a broad range of network security and privacy risks, such as unauthorized access or use of an insured’s computer system, alteration or destruction of electronic data and denial of service attacks. The policy provides both third party insurance including optional Internet media liability and optional first party coverages.
Brad Gow, senior vice president of specialty errors and omissions for Zurich North America Commercial’s Specialties business unit, says the current regulatory environment is creating an escalating exposure for companies, with more stringent reporting requirements as well as media notification in numerous jurisdictions. At present, more than 40 states, the District of Columbia and numerous foreign jurisdictions have data breach reporting regulations with new legislation being developed continually.
“Most of the technologies making today’s workforce more efficient, including smartphones, laptops, and external hard drives, are also making it easier than ever for data breaches to occur,” Gow says. “The fact is, the vulnerability of business owners doesn’t only spring from hackers or cyber attacks. A vendor or an unhappy employee can walk off with millions of records on a USB stick.”
Zurich Security and Privacy Protection coverage provides a broad range of critical third party and first party insurance coverage. This policy was designed to help reduce the confusion that can result from dealing with multiple policies helping to close the gaps in coverage existing today, according to Zurich.
Coverage highlights include:
* Third party coverage:
— Security and privacy liability coverage, which includes limited coverage for regulatory proceedings defense costs
— Internet media liability coverage (available as an option)
* Privacy breach costs coverage (available as an option):
— Covers certain legal and public relations expenses and forensic investigation expenses of a company’s computer system to determine the cause or extent of a privacy breach
* First party coverage:
— Business income loss and dependent business income loss
— Digital asset replacement expense
— Cyber extortion threat and reward payments
Zurich’s new policy is available to all major industries and offers specialized protection for the particular vulnerabilities faced by financial enterprises, health care industries, which need to comply with key regulations such as the recently enacted HITECH Act, and technology firms.
Policyholders can also gain access for no additional charge to NetDiligence’s eRisk hub, a Web-based resource for cyber incident prevention and recovery service information. Zurich Security and Privacy Protection customers will also be offered access to additional prevention and recovery resources, such as these current offerings:
* Deloitte’s Digital Forensic and e-Discovery,
* National ID Recovery, and
* Identity Theft 911’s Security Breach Response.
For more information, go to http://www.zurichna.com/securityandprivacy.
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