Vallone-Davis-Cyber Liability

In this edition of Cyber Risk – The Threat…The Response (sponsored by Worldwide Facilities, Inc.), guest Steve Vallone, a Broker at Worldwide Facilities and Serene Davis, a Professional Liability Underwriter at Beazley, discuss privacy breach insurance.

According to Ms. Davis, “Privacy breach insurance is…a liability policy…that is secondary to first-party coverages…When a breach occurs, there are multiple steps…and large costs involved in managing the breach…”  There have been attempts, by plaintiffs’ attorneys to bring cases after a breach happens, says Ms. Davis, “but the courts are quick to say that there are no damages with a breach.”

In evaluating the different policies and coverages, Mr. Vallone sees “the devil in the details…and it’s in the exclusions.  You have to look for trapdoors or gaps in the policy.”  Buyers have to be aware of what the policy is excluding, “which can restrict coverage in the case of a data breach or a claim.”

Breach coverage is a specialized coverage and not a coverage every broker understands or wants to handle, says Ms. Davis.  It’s important to use an agency that has the expertise.

Ms. Davis explains important coverages to include in a cyber policy including “first party coverage for the breach management…(including) forensics coverage, legal services coverage, printing notification letters, and credit/identify monitoring.  Optional coverages to consider include business interruption, corrupt data access, and cyber extortion.”

For more information on cyber risk, visit the Worldwide Facilities website or the WRIN.tv On Demand Library.

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