There are many areas of insurance that companies consider. Frequently, the first purchase for companies in the FinTech space is Cyber. I prefer to call this product Data Security and Privacy Liability or DSP. DSP or Cyber coverage can include as many as ten different insuring agreements and these can vary widely by carrier. Many companies can include some level of coverage as an endorsement or add-on to the Commercial Package policy or even the private company Directors & Officers Liability package program. Some of these endorsements are solid coverage but most often a stand-alone product is necessary for the broadest coverage.
A good Data Security & Privacy Liability program will include the following coverage features:
- Network Security & Privacy Liability - this addresses liability exposures from a privacy breach or network hack
- Extra Expense Cover for Data Breach - this covers notification expenses, forensic costs, public relations, crisis management and more (things like credit monitoring and a call center are frequently covered).
- Media Liability - addresses claims of infringement, copyright issues, etc. for your website and other electronic media. The best policies cover all of your media related activities (think print advertising, flyers, logo on your letterhead, etc.)
- Regulatory Defense, Fines and Penalties - many policies limit coverage in this area. Some only provide defense and others cap out the limits at $100,000 or less. Full policy limits are available in the marketplace with the right broker representation.
- Business Income Interruption - when your network is down for days while you recover, your company may lose a significant amount of income. The Business Income component will minimize your loss during this time.
- Data Restoration and Digital Asset Protection - this covers the extra expense to recover, rebuild, and replace your data. That can be far more time consuming and expensive than you may realize.
- Cyber Extortion and Cyber Terrorism - kind of like how it sounds.
Some carriers can extend their policy to cover Social Engineering Fraud or Cyber Deception (where your employee is duped into sending money to an unauthorized person. This is happening to companies in small and sometimes in very large amounts).
You want to pay attention to the limits. Many carriers cap out coverage features below the policy limit. For example, they will have a $1M limit but only provide $100k for PCI or $500k for Regulatory Coverage. Know what you need and make sure your policy has not limited you.
Our team has access to the broadest products in the marketplace and we have streamlined the process to make it quick and easy. In fact, the DSP policy is probably going to be the easiest coverage for you to get. Our programs are easy, comprehensive, and competitively priced. E-mail or use the Contact Us link to inquire further. We can generate bindable terms in minutes and the cost is less than you would expect. We need four basic pieces of information, (1) legal name and physical address; (2) website; (3) contact person; (4) revenues for current or most recent calendar year. That's it! Don't believe that it can be this easy, call or e-mail. We will get you a firm quote that you can act on with minimal fuss. (do not e-mail confidential or sensitive information)
Monica M. Minkel, RPLU, MLIS, cyRM has been working exclusively with Directors & Officers Liability, Professional Liability, Cyber Liability and related products for more than 15 years. She started her interest in finance by loaning money to her mom at age 11 (complete with a loan agreement and competitive interest rate). She is passionate about all things in the financial industry and the way technology is changing the way capital markets function.