IT’S ONLY A MATTER OF TIME
before cyber liability becomes a standard insurance requirement in contracts, just like general liability is now. In 2011 the SEC issued guidance for disclosures related to cyber issues, including the following critical areas: adequacy of preventive measures, relevant insurance coverage and outsourcing functions with material cyber risk. The SEC’s guidance put data security on the radar for all publicly traded companies and vendors with whom they do business. Private companies are following suit.
The value in purchasing cyber insurance extends beyond just securing clients. In addition to funding the costs associated with a breach, cyber policies can provide a firm with the resources to respond to the breach, taking the ambiguity out of the confusing but critical post-breach period. This can include everything from a single point of access of first responders who triage the situation and determine appropriate measures, to legal and PR expertise to assist with compliance and reputation restoration.
BRP offers cyber coverage through a new and expanded admitted management liability package policy backed by ‘A’ rated paper. Separately, on a non-admitted basis, it also offers E&O with built-in data breach/privacy coverage for technology service providers, including website designers and engineers, software developers, and emerging tech firms.