What is Database Insurance by IT Risk Managers

What is Database (Cyber) Insurance?

Do you collect information on your customers? Do you have a database of information such as names, addresses, credit card information, driver’s license numbers, social security numbers, phone numbers, medical information etc. If you do then you have what is called Personally Identifiable Information (PII). PII is the information that identity thieves target. Database Insurance provides coverage for just this type of risk and exposure.

Some insurance companies call this coverage Privacy & Security Insurance or Cyber Insurance, but at IT Risk Managers, we call it Database Insurance because that’s what this insurance protects....your database.

Make no mistake about it; all businesses have a need for Database insurance. Therefore as a business owner your two choices are, do you self-insure the risk or transfer it? .... Get an indication today.

Forty-Eight (48) States have some type of Privacy Law or Database Notification Law on their books today. In simple terms these State Laws say that if your business loses a database of PII, then your company is responsible to notify and provide restitution (a victim assistance package) for all of the individuals in your database from that State. One of the issues that make this event so costly is that each State Law is different and therefore the cost of compliance is very expensive.

Our Database Insurance policy can assist you with the financial cost of complying with these laws as well as other expenses that you will incur should your business experience a data breach event. In addition to a victim assistance package, these expenses could include; legal defense, damages, notification cost, regulatory fines and penalties, computer forensics and electronic advertising injury just to name a few.

Coverage is provided for:

Privacy Liability

Third Party coverage in response to the loss of Personally Identifiable Information (PII) in computer data, hard copy form and the liability arising from failure to comply with state and breach-notice laws. Coverage is also for failure to comply with the insured’s privacy policies.

Computer Information Security

Third party coverage in response to unauthorized access, theft of or destruction of data, denial of service attacks and virus transmission involving the insured's computer systems resulting from a computer security breach.

Electronic Media Liability

Covers display of electronic media (content) on the insured's website; and extends to many internet-related exposures including advertising injuries that are not covered or normally excluded under many of today's General Liability policies.

Ransomware/Cyber Extortion/Phishing Attacks

Phishing has quickly become the common method used by attackers to infiltrate networks. A phishing attack typically consists of faked emails sent to an employee that will entice them to click on a link that unleashes malicious software that can compromise their computers and network. Coverage is available for payments of Ransom/Extortion demands. This coverage is incredibly important when businesses are not able to operate due to their network being locked down (Extorted). This is meaningful for companies who rely heavily on their computers and networks.

First Party Coverage from Loss due to Network Security Breaches

Optional coverage endorsement available for destruction and loss of data as well as network business interruption and cyber extortion caused by failure of computer security to prevent a security breach.