Home » Member Benefits » Cyber Liability

How Cyber Insurance can protect your business - The need for cyber insurance is real.

Cyber insurance protects businesses from computer, network and Internet-based risks. The policy covers both first and third-party losses.

Every business that uses the Internet, accepts credit cards or uses a system network needs cyber insurance. If you answer yes to any of these questions, you need a cyber insurance policy:

  • Does your business accept credit card payments?
  • Does your business bank online?
  • Does your business use Facebook, Twitter, or LinkedIn?
  • Does your business store sensitive customer or employee data?

Coverage Included

YOUR CYBER EXPOSUREHOW OUR CYBER INSURANCE POLICY RESPONDS
SOCIAL ENGINEERING
An employee is tricked into sending money to an imposter pretending to be a company manager, customer, or vendor.
Reimburses you for the money lost from a social engineering scheme.
FUNDS TRANSFER FRAUD
A hacker breaks into your computer system and gains access to your online banking account. The hacker uses his access to request a funds transfer.
Covers the money lost but not reimbursed from a criminal fraudulently issuing instructions to your bank to electronically transfer funds.
RANSOMWARE
An employee unknowingly opens a link in an email that contains a computer virus. The virus immediately begins encrypting files on your network. The criminals reach out to you demanding $5,000 in return for unlocking the company’s files.
Covers the ransom in excess of the deductible to unlock your files after consultation with the Insurer.
NETWORK INTERRUPTION
A computer virus brings down your customer order system. It takes three days before technicians can get it up and running again.
Reimburses lost profits and any extra expenses incurred while systems were down after an initial 8-hour down time threshold.
DATA BREACH
A hacker gets past your security controls and breaches your network. Customer data records which included sensitive personally identifiable information were stolen. However, the extent of the breach and number of records implicated is undetermined without a further security review.
Covers:
• Legal fees, security experts, PR consultants, notification costs, and identity theft protection for customers impacted by the breach;
• PCI fines and penalties; and
• Defense and settlement costs for related lawsuits.
NETWORK SECURITY
Your website was hit with a virus that flooded your network with 10 times the normal traffic, rendering your system inoperable. The virus was transmitted to several key customer websites, bringing their systems down as well.
Covers lawsuits brought by those customers impacted by the virus transmissions and covers the cost to repair any damage to your data files.
MEDIA LIABILITY
A customer posted a complaint on your Facebook page. An employee posted a reply accusing the customer of lying.
Covers content related lawsuits for defamatory and slanderous comments made by your company on its social media accounts.

About our Cyber Insurance Program

Cyber insurance protects businesses from computer, network and Internet-based risks. The policy covers both first and third-party loss. Every business that uses the Internet, accepts credit cards or uses a system network needs cyber insurance.
PIA cyber insurance is offered through ABA Insurance Services and Great American E&S Insurance Company (rated A+ by
A.M. Best). ABA Insurance Services’ history with cyber insurance dates to 2001. With deep institutional knowledge, ABA
Insurance Services offers the coverage and claims expertise needed to protect against today’s exposures.

Features

  • Limits up to $3,000,000
  • Retentions as low as $1,000
  • Minimum premium of $500
  • First and third party coverage provided, including crime and funds transfer fraud
  • Social engineering (aka business impersonation) coverage optional
  • All coverage offered on a non-admitted basis
  • Endorsed by the National Association of Professional Insurance Agents

Preferred Classes

  • Distributors and wholesalers
  • Hotels
  • Manufacturers
  • Restaurants
  • Retailers
  • Restricted Classes

Employment placement/temp agencies

  • Law firms
  • Media risks
  • Software production and technology companies
  • Title/escrow agencies

Cyber Risk Security Resources

Incident Response Services

A Vedder Price attorney will coordinate the incident response. Vedder Price’s services
are free of charge and do not impact policy limits nor are they subject to a deductible. Vedder Price incident response
experts will assist in determining the extent of the situation and work closely with the insured to resolve outstanding issues.
The Vedder Price incident response expert will work with the claims adjuster and oversee other third-party services that may
be covered by the policy, including:

  • Forensic investigations
  • Law enforcement communications
  • Media communications
  • Breach victim notifications
  • Breach victim credit monitoring and identity theft services

Cyberscout

Insureds get access to CyberScout, a “Breach Preparedness” website with valuable tools including:

  • Educational Resources such as data protection tips, breach scenarios, articles, and best practices
  • Incidence Response Plan Templates to help establishes procedures for handling a breach
  • Notification Laws and Regulations Information regarding consumer, regulatory and third party requirements
  • Risk Calculators like RiskCompass™, which estimates the amount of insurance needed to respond to a data breach.
  • Cyber News on the latest scams and fraud technology

Security Scorecard

SecurityScorecard rates a website’s security environment and provides a report covering ten different security areas with action items to help improve a site’s security profile.

PIA Program Enhancements

Great American Insurance Company has enhanced its standard coverage to include broader coverage. Learn more by visiting the PIA Program Enhancements Page

Questions?

Please contact Heidi Hodel-Faris at hhodel@piaw.org or by phone at 608-274-8188.