Frankenmuth Insurance is pleased to announce the launch of Cyber Plus on March 1, 2014.
What makes Cyber Plus different?
The Cyber Plus Coverage Guide provides a summary of each coverage in the order they appear in the form, and it includes claims examples to illustrate how coverage is triggered. Below is an excerpt featuring a Cyber Plus 1st Party Coverage.
Privacy Breach Response Costs, Notification Expenses, and Customer Support and Credit Monitoring Expenses Coverage
Are your insureds able to keep pace with the changing world of privacy and electronic laws and regulations? Each state governs privacy concerns differently, however, commercial insureds are required to comply with regulation based on the state where their customer resides.
Average out of pocket costs are more than $200 per record. Are you prepared to absorb this as a business expense? In recent years attacks on businesses with fewer than 250 employees has exponentially increased. Cyber privacy experts report 85% of data breaches occur with small businesses. Stolen laptops, smart phones and tablets are a leading cause of compromised records.
Privacy Breach Response Costs, Notification Expense, and Customer Support and Credit Monitoring Expenses Coverage pays for data breach expenses:
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For notification costs to comply with privacy breach regulations mandating notice to affected individuals in the event of a breach
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For costs for hiring a public relations firm to repair damage to insured’s reputation
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For legal expense, forensic and investigation fees incurred in breach response
Claim example: An auto repair shop accepts credit card payments and transmits transaction over a high speed phone line. Cyber-criminals use specially designed software applications to intercept credit card payment transactions and happen to find the unlucky auto repair shop’s vulnerability. A government agency contacts the garage operator and advises him to notify all credit card customers within the past 12 months of the breach, to take necessary precautions to prevent future breaches, and provide customers with 12 months credit monitoring services.
On top of the legal costs to comply with data breach statutes the auto repair shop’s reputation will likely need repairs to attract customers back to the business.
Next week’s blog highlights Network Asset Protection, the coverage that picks up where traditional property policies leave off.
Cyber Plus Booklet Final (FI) .pdf (892.67 kb)
