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PRIVATE COMPANIES
ForeFront Portfolio 3.0SM
CyberSecurity Insurance If your company operates under the assumption that data security breaches and privacy losses only happen to billion-dollar companies, it’s time to change your thinking—before it’s too late. Cyber breaches and privacy losses can happen to any company regardless of size. In fact, small to midsize companies may be more likely to face cyber risk than big companies because they typically have fewer resources for fending off or managing events. It’s reassuring to know that your company can benefit from ForeFront Portfolio 3.0SM CyberSecurity insurance, knowing we designed it specifically for companies like yours.
“In the aftermath of a breach, companies find they must spend heavily to regain their brand image and acquire new customers.” –A 2014 Ponemon Institute press release.
What are the most common cyber exposures for a company?
How costly can security breaches or privacy losses be?
• Forensic expenses, compliance assessment fees and public relations costs.
Based on published information from reputable sources, global data breach and privacy loss costs can be exorbitant.
• Privacy notification and call center costs along with credit, identity or healthcare records monitoring and restoration expenses.
• The reported average cost of a data breach to an
• A civil proceeding alleging actual or potential
organization is $3.8 million ($6.5 million in the 1 United States).
unauthorized access to private or proprietary information, virus transmission or system impairment.
• The reported average cost per compromised record is $154 ($217 in the United States). Approximately one-third of this amount relates to direct costs associated with forensics, notification, 1 credit monitoring and public relations expenses.
• A regulatory proceeding resulting in defense costs and fines, penalties and the need to set aside consumer redress funds.
• Payment card industry assessments.
• Cyber attack costs can rapidly escalate if the crisis
• E-business interruption and extra expenses
is not resolved quickly.
associated with improper access or transmission.
• The financial pain of a cyber breach extends
• A cyber extortion threat.
beyond funding the out-of-pocket costs of recovery. The lost time, damaged reputation and business interruption are hidden costs that may result.
• Data restoration loss.
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Source: 2015 U.S. Cost of a Data Breach Study, The Ponemon Institute and IBM.
Reasons your company needs the ForeFront Portfolio 3.0 CyberSecurity Insurance • Your company hosts, stores, shares or transmits private or proprietary information.
• Impaired-access liability, including claims arising from a system security failure resulting in a company’s system being unavailable to its customers.
• Privacy regulatory action coverage, including regulatory action defense costs, fines, penalties and consumer redress funds associated with actual or potential privacy liability.
• Your company transacts business and generates revenue from the Internet and new media.
• Your company has exposure to consumer identity theft, including remediation for notification costs.
Cyber expense coverage • Privacy notification expenses even if the notification is voluntary on the part of the insured (with an alternative limits of liability or number of affected persons approach, which is outside the limit of liability).
• Your company’s business operations would be impacted by a service disruption.
• Your company has a high profile, which increases the probability of cyber extortion.
• Your company outsources the storage, processing or sharing of confidential information with third-party service providers.
• Crisis management and reward expenses, including the cost of forensic and public relations consultants.
• E-business interruption and first-dollar extra expense. • E-threat, including the cost of a professional negotiator and ransom payment.
Even if your company isn’t hacked, it’s a fact that more than half of all cyber breaches—54%—result from human error 2 or system problems.
• E-vandalism expenses, even when the vandalism is
Coverage part highlights
Optional coverage for:
• Comprehensive cyber liability (third-party) and expense (first-party) coverage.
caused by an employee.
• Payment card industry assessments. • Service provider e-business interruption and extra expense (for companies that outsource).
• Broad definition of “record” including private information as defined by law; business and proprietary information in the care, custody or control of an organization or a third-party service provider performing processing, storage or hosting services for an organization; or other non-public information provided to an organization pursuant to a written confidentiality or non-disclosure agreement.
Additional advantages: • Backed by Chubb’s experience with insuring cyber risks since 2001.
• Chubb eRisk Hub® provides online cyber breach resources, including Incident Response Plan 3 template guidance and more tools to help your business mitigate its risk of a data breach or privacy loss and assist it in responding quickly when one occurs.
• Exception to the war exclusion for cyberterrorism. • Insured can waive subrogation rights prior to a wrongful act; Chubb has no subrogation rights against the insured.
• Coverage is non-cancelable (other than non-payment of premium) and non-rescindable by Chubb.
• Reimbursement for a percentage of the cost of qualified cyber loss prevention services for specialized cyber attorneys, vendors and service providers (where permitted by law).
Cyber liability coverage • Privacy liability, including coverage for claims alleging actual or potential unauthorized access to private information, failure to comply with an organization’s publicly stated privacy policy, failure to notify people in a timely fashion about unauthorized access to their private information, and release of information due to unauthorized access into a system operated by an organization or third-party service provider.
• Conduit liability, including claims arising from system security failures in an insured’s or third-party service provider’s system that result in systems being impaired or unavailable. 2
2015 Cost of a Data Breach Study, The Ponemon Institute and IBM.
• You can be confident that the ForeFront Portfolio 3.0
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CyberSecurity Insurance, when purchased with the Errors and Omissions and Management Liability Insurance, helps to address your coverage needs.
usiness continuity management plays a role in reducing the cost of a B data breach by $7 per record. Source: 2015 U.S. Cost of a Data Breach Study, The Ponemon Institute and IBM.
Learn more about how Chubb can help protect your company from cyber risks by contacting your insurance agent or broker. You may also visit us online at www.chubb.com.
Chubb Group of Insurance Companies | www.chubb.com Chubb refers to the insurers of the Chubb Group of Insurance companies underwriting coverage. For a full list of these companies, please see Chubb’s website. Not all insurers do business in all jurisdictions. This literature is descriptive only. Actual coverage is subject to the language of the policies as issued. Chubb, Box 1615, Warren, NJ 07061-1615. Form 14-01-1062 (Rev. 11/15) Printed on recycled paper.
