Posted on 23 Apr 2012
Travelers, a pioneer in cyber insurance coverage, today introduced an enhanced version of CyberFirst, its industry-leading product suite with eight new first party coverage options designed for the needs of technology companies. The new Expense Reimbursement module covers costs resulting from cyber attacks including theft of assets, intellectual property or private information; as well as telecommunications theft protection, a unique coverage option only available through CyberFirst.
This new module complements an existing trio of third party cyber liability coverage options including Technology Errors and Omissions Liability, Network and Information Security Liability, and Communications and Media Liability - all tailored specifically for technology companies.
"Whether a customer is facing a potential liability, or trying to manage business risks due to a data breach event, the broad protection offered by CyberFirst fills in the gaps not covered by a traditional, general liability policy," said Kathy Swendsen, President of Travelers Global Technology. "CyberFirst creates a comprehensive, one-stop shop by packaging all coverage components together in a single offering."
The Expense Reimbursement coverage options include:
• Security breach notification and remediation expense
• Crisis management service expenses
• Business interruption and additional expenses
• Cyber extortion expenses
• Computer program and electronic data restoration expenses
• Computer fraud
• Funds transfer fraud
• Telecommunications theft
The new enhancements provide even greater flexibility in building the right coverage to fit each technology company's needs. The new first party options complement Travelers' existing enterprise-wide and worldwide liability coverage which provide up to $25 million in protection.
According to a recent study, the cost of a data breach per record is $1941. These costs can add up quickly. For example, a breach involving 10,000 records could cost nearly $2 million. "Selecting an insurance company for cyber coverage can be a complex process. Identifying your real exposures often goes far beyond the completion of a simple checklist," said Swendsen. "Travelers was a pioneer with CyberFirst. Our new and enhanced form continues to lead the marketplace."
Travelers has provided coverage solutions to technology companies for more than 25 years and understands the importance of assisting companies and organizations through the full cycle of an incident, from coping with a breach to expenses related to potential lawsuits. In addition to this new product, Travelers offers cyber liability coverage tailored to the needs of Public Sector customers, Bond and Financial Products customers, among others.
CyberFirst will be available in all 50 states. More information on CyberFirst is available on the Travelers website, www.travelers.com.