Thursday, May 29, 2008

Tech Talk - 1st Party Exposures, Part 3 (4/24/08 Knowledge Knugget)

How are first party technology/cyberliability policies addressing your clients' exposures?

There are many markets offering monoline first party policies, and even more offering first party coverage as part of a combo policy covering both first and third party exposures.

These policies cover many non-physical and some physical causes of loss, provide extra expense and business interruption coverage, and other bells and whistles. Perils and coverages vary widely. A quick run-down of possibilities:

Perils covered include:
  • Computer virus
  • Unauthorized access
  • Employee mistake or tampering
  • Internal/External hack attacks
  • Denial of service attacks (such as flooding bandwidth)
  • Loss to customers or vendors that impacts your client's business
  • Cyber-extortion
  • Natural disaster
  • Power surge
  • Theft/physical damage

Types of loss covered:
  • Business interruption
  • Extra expense
  • Forensic expense
  • Data recovery cost
  • Public relations cost

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