As of September 2009, HIPAA (Health Insurance Portability and Accountability Act), and the subsequent HITECH Act (Health Information Technology for Economic and Clinical Health), new privacy and security requirements exist for protecting PII (Personal Identifiable Information). A new theory of liability was created, due to these federal requirements for all employers, Cyber Liability.
William H. Connolly & Co., LLC has been involved from the start with insurers in identifying and building Cyber Liability programs designed to meet the liability exposures created by this theory of liability.
In addition to Third Party Liability coverage, the typical Cyber Liability policy will cover the costs associated with a data breach. These data breaches can occur in a variety of ways. Data can be stolen by skillful hackers, siphoned off by malicious employees, or simply mislaid by a careless employee. Once a breach occurs an unprepared organization can find itself in a firestorm of controversy and bad publicity. Reputation damage and the financial implications for such exposures to loss can be devastating.
The coverages included in the typical policy include:
- Network Security Liability
- Privacy Liability
- Media Liability
- Regulatory Liability
- Notification Expense and Credit Monitoring
- Crisis Management/Public Relations
- Network Business Interruption
- Cyber Extortion
Allow us the opportunity to determine the best program design to protect your assets and properly meet your financial needs.