Cyber Liability Insurance – Los Angeles, California

1 | PRIVACY LAWS
Forty-seven states, the District of Columbia and the federal government have privacy laws requiring prompt notification if personally identifiable information (“PII”) that is not encrypted is lost, stolen or disclosed. Cyber coverage will pay for forensic investigators to determine the source and extent of a breach, attorneys to determine if notification is required and draft the notification letters, and breach response firms to provide notification services and credit monitoring to affected individuals. Coverage also extends to third-party claims alleging unauthorized disclosure of PII or other confidential information.

2 | FINES/PENALTIES
Failure to comply with a privacy law can lead to significant fines or penalties levied by either state or federal agencies. Cyber coverage can pay for the defense of this type of regulatory enforcement action as well as any resulting fines or penalties.

3 | PCI
Under Merchant Services Agreements, organizations that accept credit card payments can be liable for forensic investigation costs, credit card reissuance costs, reimbursement of actual fraud losses and Payment Card Industry (“PCI”) fines or penalties if the organization is found to be non-compliant with PCI’s Data Security Standards (“PCI-DSS”) at the time of a data breach. Cyber insurance can cover these contractual losses.

4 | DATA DESTRUCTION
Hackers and rogue employees can destroy or damage an organization’s electronic records. Cyber coverage will pay for the costs to restore or recreate these records.

5 | SHUTDOWN
Cyber-attacks may disable, corrupt or shut down an organization’s computer network or point of sale system. Cyber coverage can pay for the loss of income while these systems are down awaiting restoration.

6 | EXTORTION
Hackers can threaten to steal or disclose data, encrypt a company’s entire network, or wreak other havoc on a company’s computer network if a ransom is not paid. Cyber coverage can pay for the cost of the ransom to end the threat.

7 | CONTRACTS
Increasingly, organizations are required to carry cyber liability insurance to meet contractual obligations. Cyber coverage can meet this requirement.

8 | EXPERTS
Cyber coverage can provide a team of cyber experts to assist an organization in responding quickly to a data breach including forensic experts, attorneys, notification specialists and credit monitoring companies.

9 | REPUTATION
Public relations experts can help restore and protect a your organization’s reputation if a data breach goes public. Cyber coverage can contribution to the cost of hiring a public relations specialist.

10 | VENDORS
Businesses often transfer or entrust data to vendors, such as cloud storage providers, credit card processors, marketing firms or other third parties. If these third parties experience a breach, the business itself, as the data owner, is responsible for providing notification under most laws. Cyber insurance will provide coverage regardless of who caused the breach or where the data resided at the time of the compromise.