NAS Insurance Enhances Cyber Liability Coverage, Lowers Rates

May 19, 2016

NAS Insurance Services has enhanced its NetGuard Plus cyber liability product. The new coverage features offer greater protection for emerging privacy and security threats for businesses of all sizes across a range of industries.

The enhancements include:

  • Unknown prior acts for covered cyber incidents that took place at any time prior to the inception date of the policy
  • Business interruption expenses incurred as a result of outages caused by an insured’s cloud provider or web host.
  • Cyber-crime coverage for incidents such as fraudulent wire transfer requests is now included on every quote
  • Payment Card Industry (PCI) fines, penalties and assessments are covered up to the policy limit
  • BrandGuard coverage for reputational harm is included up to the policy limit on most quotes

In addition to the enhancements to the cyber liability insurance coverage, NAS has reduced its rates and increased its maximum limits to $25 million.

In its recently released “2016 Incident Security Threat Report,” Symantec reported that over 400 million individual identities were exposed in 2015. Incidents of malicious software viruses and ‘ransomware’ in particular have increased 35 percent, and email scams (aka, “spear phishing attacks”) targeting employees have increased 55 percent. The Symantec report also identified that 43 percent of attacks are targeted at small- to mid-size businesses.

“We’re seeing significant growth in demand for cyber insurance from the SMB sector,” commented Michael Palotay, National Cyber Liability Practice leader for NAS. “It’s not just the large corporations with large volumes of credit card data that are targeted. Often, it is employees of smaller companies falling prey to social engineering or phishing scams that lead to a breach or other criminal activity which really hurt the small- and mid-sized businesses.”

NAS Insurance Services is a full-service specialty insurance underwriting manager that provides product development, underwriting, marketing, risk management, and claims handling services for a range of specialty insurance products.

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