MRSC’s article, Cyber Response and Insurance, provides a good reminder of how to be preparing for potential cyber security related claim. RMSA’s response to the questions posed in the article are below for your review.
What first-party coverage do we have?
Business interruption and extra expense; loss of business income; Extra expense; data recovery; cyber-extortion and ransomware; data breach response and crisis management coverage.
What third-party coverage do we have?
Technology products and services; professional services; media; privacy and cyber security; privacy regulatory defense, awards, and fines.
What are the per-claim and aggregate limits?
No per claim limits; $3 million aggregate limits.
Does our policy include data breach response, such as crisis management and notification support?
Yes, contact RMSA and we’ll help you get the necessary support.
Is it a deductible or a Self-Insured Retention (SIR)?
Yes, the pool has a $25,000 deductible, the members’ coverage starts at dollar one.
Do expense costs erode the deductible or the SIR?
No.
Does the policy pay for the payment of ransom in a cyber extortion incident?
Yes, subject to the $3,000,000 limits.
Is social engineering covered and, if so, do conditions apply?
Yes. And yes. Social engineering is covered, but it must meet the definition below.
“The transfer of money or securities to an account outside the Insured’s control pursuant to instructions made by a person purporting to be an authorized employee, outsourced provider or customer of the Insured, when such instructions prove to have been fraudulent and issued by a person who is not an authorized employee, outsourced provider, or customer of the Insured.”
Do we have a retroactive date?
Yes, the retroactive back to when RMSA first provided the coverage (01/01/2017).
Do we have a claims made or per occurrence coverage?
Occurrence coverage.
- If it is claims made, when is it claims made and is there an extended reporting period?
N/A.
- What is the definition of occurrence?
Occurrence based policies provide coverage for when the claim occurred, regardless of whether or not that is the coverage you have right now. A policy covering claims that arise out of damage or injury that took place during the policy period, regardless of when claims are made.