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What is Cyber Insurance?
Chubb offers comprehensive cyber insurance solutions, leveraging its long-standing expertise in the insurance industry. Founded in 1882 as a marine underwriting business in New York City, Chubb has evolved into a global leader in property and casualty insurance over its 140-year history. Chubb has a long history in cyber insurance; its tailored products and resources—and its signature financial strength—will help protect your business in the ever-changing risk landscape of today’s data-based world.
Cyber insurance has evolved dramatically over the years. The most basic role of cyber insurance is risk transfer, which essentially removes or lessens the financial burden from the company or an individual in the event of a cyber incident. However, a good insurance policy is more than a risk transfer solution. If your company experiences a data breach, the cyber policy should cover costs such as legal fees, forensics, notification and call center costs, credit monitoring fees, and public relations support.
Cyber Risk Explained
Cyber risks like data breaches and ransomware threaten digital systems. Cyber insurance covers financial impacts, including breach response, business interruption, extortion, legal fees, and crisis management, enhancing organizational risk management.
Cybersecurity Myth Busters
Preparing is critical to protecting your business data, systems, and applications. There are several cybersecurity myths that everyone should know. In this video, Chubb identifies and explains the top five cybersecurity myths: Passwords, Updates, Employees, Cyber Criminals, and Small Businesses.
Neglected Software
Keeping software updated is an important aspect of good cyber risk hygiene. Patching vulnerable software before cybercriminals have an opportunity to exploit it can prevent many losses, but some organizations may not patch software right away. Chubb provides policyholders with a grace period to patch some software vulnerabilities.
Risk Management Solutions
Many companies, regardless of size or industry, only consider insuring themselves against cyber threats once it is too late. If a cyber incident occurs, there are often response costs, loss of income, paying off scammers, and extra expenses that pile up before any third-party lawsuits or regulatory investigations begin. Chubb can help policyholders mitigate exposures and reduce risk through innovative cyber risk transfer solutions.
What is a Data Breach?
A data breach occurs when an unauthorized party has accessed, taken, or disclosed sensitive, confidential, or otherwise protected data. The types of data that can be breached may fall into one or more of the following categories: Personally Identifiable Information (PII), Payment Card Information (PCI), Personal Health Information (PHI), and Business Information of a confidential or proprietary nature, such as trade secrets or other intellectual property.
What is Aggregation?
Aggregation in cyber insurance involves analyzing past events to assess and distribute risk effectively. When choosing a cyber insurance carrier, prioritize those with extensive industry experience and advanced risk modeling technology. This enables the carrier to accurately evaluate risks across diverse companies and create tailored policies that provide appropriate coverage for your business’s specific needs.
What is Business Interruption?
Business Interruption is anything that disrupts normal business operations, often resulting in a financial loss. Just like when an organization experiences a business interruption due to a physical event like a fire or hurricane, some of the costliest business interruptions are caused by cyber disasters.
What is Credential Harvesting?
Credential Harvesting, often referred to as Account Harvesting, occurs when people use legitimate user IDs and passwords to gain access to a business’s systems. If your login credentials are compromised, cybercriminals could potentially access your sensitive files and overall system. No matter what protections you put in place, it is nearly impossible to eliminate your risk of Credential Harvesting, which is on the rise.
What is Cyber as a Peril?
Cyber as a Peril refers to risks linked to digital technologies, networks, and data, including threats like breaches, ransomware, and business interruption. These risks affect all types of companies and can potentially cause significant damage. Chubb provides cyber insurance products to address these perils, covering various expenses and adapting to emerging threats.
What is Cyber Insurance?
Cyber Insurance has evolved dramatically over the years. The most basic rule of cyber insurance is risk transfer, which essentially removes or lessens the financial burden from the company or individual in the event of a cyber incident. Coverage can often provide your business with industry-leading response services and access to a full team to help overcome the challenges.
What is Ransomware?
Ransomware is a type of Malware that limits access to systems or files, locking the computer screen or users’ files until a ransom is paid. Essentially, it is a form of extortion. With global costs in the billions of dollars per year, ransomware is a major risk to both individuals and businesses. Working with an experienced cyber insurer is vital to ensure that even if your systems are compromised, your peace of mind does not have to be.
What are Widespread Events?
A Widespread Event is an event that impacts many policyholders at the same time. Most cyber incidents are limited-impact events, but some are widespread events. A limited-impact event affects the policyholder and others with whom the policyholder has a relationship. When a cyber incident arises from a widespread trigger that affects businesses beyond the policyholder’s limited-impact group, that incident is defined as a widespread event.
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Cyber ERM
Cyber Enterprise
Risk Management
Chubb Cyber Enterprise Risk Management (ERM)
Chubb’s Cyber Enterprise Risk Management (Cyber ERM) is a comprehensive solution designed to address the evolving landscape of cyber risks businesses face today. With over 20 years of experience handling cyber incidents, Chubb offers a sustainable approach to insuring a broad array of cyber events, including widespread events that can result in catastrophic losses.
The Cyber ERM program is built on a three-pronged approach:
- Loss Mitigation Services: Providing tools and resources to assess and address cybersecurity risks proactively.
- Incident Response Services: Offering a diverse team of experts to help limit exposure when an event occurs.
- Risk Transfer: Providing broad and sustainable insurance coverage backed by Chubb’s financial strength.
Competitive Advantages
Chubb’s Cyber ERM stands out with several competitive advantages:
- Leading provider of cyber risk solutions since 1998
- Highly customizable solutions for all sizes of businesses
- No minimum premiums
- Cybercrime coverage available
- Expansive consumer-based solutions for cyber incident response
- Online quoting for eligible small risks
- Innovative coverage addressing evolving standards
- Easy-to-read policy form
- Worldwide coverage territory
New Endorsements (2021)
Chubb introduced three new endorsements in 2021 to enhance their Cyber ERM offering:
- Widespread Event Endorsement: Addresses events with widespread impact, allowing tailored coverage for specific perils.
- Ransomware Encounter Endorsement: Provides a customized set of coverage options for ransomware risks.
- Neglected Software Exploit Endorsement: Rewards good software patching practices while gradually adjusting risk-sharing for unpatched software.
Coverage Options
Cyber ERM offers a range of coverage options, including:
Third-Party Liability Coverage:
- Cyber, Privacy, and Network Security Liability
- Payment Card Loss
- Regulatory Proceedings
- Media Liability
First-Party Coverage:
- Cyber Incident Response Fund
- Business Interruption (including Contingent Business Interruption)
- Digital Data Recovery
- Telephone Toll Fraud
- Network Extortion
Cyber Crime (by endorsement):
- Computer Fraud
- Funds Transfer Fraud
- Social Engineering Fraud
Chubb’s Cyber ERM provides a flexible and comprehensive solution for businesses seeking to protect themselves against the ever-evolving landscape of cyber risks. By offering tailored coverage options and innovative endorsements, Chubb aims to provide long-term stability in the cyber insurance marketplace while addressing each client’s unique needs.
DigiTech ERM
DigiTech Enterprise
Risk Management
DigiTech® Enterprise Risk Management (ERM)
Chubb’s DigiTech® Enterprise Risk Management (ERM) policy is a comprehensive solution designed to address the complex cyber and technology risks modern businesses face. With over 30 years of experience handling technology-driven claims and cyber incidents, Chubb offers a distinctive level of protection that can be customized to meet specific organizational needs.
DigiTech® ERM employs a three-pronged approach:
- Loss Mitigation Services: Provides access to tools and resources for proactively addressing and assessing key cybersecurity risks.
- Risk Transfer: Offers broad and sustainable coverage backed by Chubb’s A++ rated financial strength.
- Incident Response Services: Provides a team of experts to help limit exposure when an event occurs.
Competitive Advantages
- Market-leading customizable solutions for all sizes of risks and industries
- No minimum premiums
- Cybercrime coverage is available by endorsement or as a separate cover
- Expansive cyber incident response expense coverage
- Online quoting and real-time policy issuance for eligible small risks
- Industry-leading coverage designed to address evolving standards
- Easy-to-read policy form aligned with the typical cyber incident flow
- Universal coverage territory
New Endorsements (2021)
- Widespread Event Endorsement: Addresses cyber incidents with widespread impact, allowing tailored coverage for specific perils.
- Ransomware Encounter Endorsement: Provides customized coverage limits, retention amounts, and coinsurance for ransomware risks.
- Neglected Software Exploit Endorsement: Rewards good software-patching practices while gradually adjusting risk-sharing for unpatched software.
Coverage Synopsis
DigiTech® ERM offers a range of third-party liability and first-party coverages:
Third-Party Liability Coverage:
- Technology Errors and Omissions
- Cyber, Privacy, and Network Security Liability
- Payment Card Loss
- Regulatory Proceedings
- Media Liability
First-Party Coverage:
- Cyber Incident Response Fund
- Business Interruption (including Contingent Business Interruption)
- Digital Data Recovery
- Telecom Theft
- Network Extortion
Cyber Crime (by endorsement):
- Computer Fraud
- Funds Transfer Fraud
- Social Engineering Fraud
DigiTech® ERM represents Chubb’s commitment to providing cutting-edge, adaptable cyber insurance solutions that address the evolving digital risk landscape. By offering tailored coverage options, including coverage for widespread events, Chubb aims to provide greater coverage certainty and long-term stability in the cyber insurance marketplace.
Pro ERM
Professional Enterprise
Risk Management
Professional Enterprise Risk Management (Pro ERM℠)
Chubb’s Professional Enterprise Risk Management Policy (Pro ERM℠) is a comprehensive insurance solution designed for professional service firms operating in today’s interconnected, technology-driven world. This policy combines multiple coverages into a single package, addressing a range of exposures and reducing potential coverage gaps.
Coverage Areas:
Pro ERM℠ protects various scenarios where professional service firms can be held accountable, including:
- Providing professional services to clients
- Delivering technology services
- Producing or publishing advertising or media content
- Handling private or proprietary information
Comprehensive Protection:
The policy incorporates several crucial coverage areas:
- Professional Liability: Covers errors or omissions in professional services
- Electronic, Social, and Printed Media Liability: Addresses risks associated with advertising and media presence
- Cyber, Privacy, and Network Security Liability: Offers protection against cyber risks
- First-Party Coverage: Includes cyber incident response, business interruption, digital data recovery, and network extortion
Additional Benefits:
- Flexibility to tailor coverage to unique exposures and needs
- Access to Chubb’s cyber loss mitigation and incident response services
- Option for additional coverages through endorsements, such as Media Liability for Professional Firms and Cyber Crime
Why Choose Pro ERM℠?
- Consolidated Coverage: Eliminates the need for multiple policies
- Client Requirements: Meets professional liability insurance requirements often mandated by clients
- Broad Protection: Covers liability arising from the firm’s actions and subcontractors’ work
- Data Security: Addresses the duty to safeguard proprietary and personal information
- Competitive Advantage: Can serve as a marketing asset when bidding for contracts
Chubb’s Strengths
Chubb has established itself as a leader in professional liability insurance due to:
- Strong financial stability, as evidenced by high ratings from independent analysts
- Reputation for fair claims handling and superior service
- Offering some of the broadest coverage available in the market
Pro ERM℠ is suitable for professional service firms of all sizes, including consultants, business process administrators, marketing firms, applied arts professionals, printers, staffing firms, travel agents, and trustees. By combining comprehensive coverage with Chubb’s expertise and support services, Pro ERM℠ offers an enterprise-wide solution to address the complex risks modern professional service firms face.
What is Cyber Insurance
Cyber insurance is a specialized insurance product designed to protect businesses against the financial losses and disruptions that can arise from cyber-related incidents, such as data breaches, ransomware attacks, and other cyber threats. This type of insurance typically covers costs related to data recovery, legal fees, notification of affected parties, regulatory fines, and business interruption losses. Businesses need cyber insurance to mitigate the financial impact of cyber-attacks, ensuring they can quickly recover and continue operations while minimizing the potential damage to their reputation and customer trust.
What does cyber insurance cover?
Cyber insurance typically covers costs related to data breaches, including data recovery, legal fees, notification of affected parties, and regulatory fines. It may also cover business interruption losses and expenses related to restoring business operations.
Why is cyber insurance important for SMBs?
Small businesses, often with potentially weaker security measures, are prime targets for cyber attacks. Cyber insurance is a crucial tool in managing the financial burden of such attacks, ensuring they can recover quickly and sustain minimal operational disruption.
How is the cost of cyber insurance determined?
Factors such as the size of the business, the industry, the amount and type of data handled, and the company’s existing cybersecurity measures influence the cost of cyber insurance. Higher-risk businesses or those with poor security practices may face higher premiums.
What are the exclusions in a cyber insurance policy?
Standard exclusions in cyber insurance policies include claims related to pre-existing breaches, acts of war or terrorism, and the failure to maintain minimum security standards. It’s essential for businesses to review policy details to understand specific exclusions and limitations.