Glatfelter Public Practice has introduced cyber liability & privacy crisis management expense coverage for municipalities and water related entities nationwide. Glatfelter Public Practice is part of Glatfelter Program Managers, a business unit dedicated to Glatfelter Insurance Group’s program business.
The coverage is triggered by data breach incidents in which a public entity may be held legally liable. These incidents include personally identifiable information such as social security numbers being taken or released from an entity’s computer system, transmission of malware from their computer to a third party, or a denial of service attack resulting in the inability to use computers or web sites.
“More than 500 million records have been breached since 2005, and the federal government, as well as 47 states, have mandated that all affected parties be notified and offered credit monitoring services after a breach,” said Mark McCrary, president of Glatfelter Public Practice. “As a result, the cost of these losses can be significant, so it is important for a public entity to protect itself.”
Cyber liability and privacy crisis management coverage is offered on the Glatfelter Public Practice public officials management liability policy written through an insurance carrier rated A+, XV by A.M. Best Company. Coverage offered with no deductible.
Cyber liability coverage (third party) has limits of $1 million occurrence/$3 million aggregate, and if an excess policy is purchased, cyber liability coverage extends through the excess. It offers protection for claims seeking monetary damages as a result of an electronic information security event, including:
- The cost to defend suits brought by affected parties
- Failure to maintain reasonable security procedures
Privacy crisis management expense coverage (first party) has limits of $50,000 with the option to purchase higher limits. Following a privacy event, it pays applicable reasonable and necessary fees on behalf of the insured. These include:
- A computer forensic analysis to determine the cause and extent of the privacy breach
- A crisis management review and advice by an approved independent crisis management or legal firm
- Expenses associated with notifying affected parties to maintain goodwill or comply with any notification requirements imposed by law (notification to affected parties for printing, advertising, mailing of materials or other costs)
- Call center services for credit monitoring as well as identity theft education and assistance for affected individuals
- Travel expenses by directors and employees to mitigate damages
Coverage will be offered in states where municipalities and water related entities are currently written.
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