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Cyber and Privacy Basic Coverages

In this discussion, part of a set of IRMI cyber videos, IRMI research analyst Bob Bregman speaks with colleague Sean Jordan about the three basic insuring agreements that form the foundation of cyber and privacy insurance policies. Privacy Notification and Crisis Management, Regulatory Defense and Penalties, and Information Security and Privacy Liability are each discussed not only in terms of the specific types of exposures that would be covered, but also by way of several real-world examples that illustrate potential claims situations.


Cyber and Privacy Additional Coverages

In addition to several core insuring agreements, most cyber and privacy insurance policies offer a wide array of additional coverages that insureds may elect to carry. In a discussion with colleague Sean Jordan, Bob Bregman details some of the more common additional insuring agreements that may be available. Mr. Bregman makes important distinctions between various types of coverage that may sound like they apply to property exposures, despite the fact that they need to be addressed within a cyber and privacy policy. Additionally, Mr. Bregman discusses the options for covering multiple types of fraud exposures, as well as cyber extortion.


Cyber Threat by Industry

Among the factors an underwriter must consider when analyzing a cyber and privacy risk is the industry that the potential insured works in. In this video, IRMI research analyst Bob Bregman and colleague Sean Jordan discuss several important industry characteristics that can help shape an underwriter’s judgment. Health care and utilities are given special attention, as the type of personally identifiable information at risk and the potential for widespread economic impact make data breaches and other cyber exposures all the more likely.


Cyber Threat from Lost/Stolen Devices

Despite our typical understanding of the terms, a "hack" and a "data breach" are not always one and the same. In this video, Bob Bregman sits down with colleague Sean Jordan for a discussion of the physical nature of data breach exposures, as opposed to the cyber threat of a virtual hack that we traditionally think of. Often overlooked, the cyber and privacy exposure resulting from lost or stolen devices can be mitigated with three risk management techniques: strong passwords, two-factor authentication, and encryption.


Credit Card Liability Shift

In this video, IRMI research analyst Bob Bregman and colleague Sean Jordan discuss the cyber and privacy exposures inherent in the change from magnetic strip credit cards to "chipped" credit cards. While the change is aimed at greater data security and protection for consumers, retailers must understand the significant shift in liability for exposures previously associated with credit card issuers. The discussion concludes with several simple risk management techniques that retailers can utilize to manage their exposure.