- Broker
- Professional and Financial Lines
- Product Leadership
- Technology, Media and Telecommunications
- Cyber and Data Security
Cyber and Data Security
Under the Technology practice QBE is able to provide cover for Cyber and Data Security. This can be provided as an add-on to the Information Communication and Technology product or on a standalone basis to go alongside non-technology clients existing cover. This is a modular based product where the Insured can pick and choose the covers they require.
Cyber is a relatively new product to come to market. Historically policies such as Property, Liability and Crime have failed to cover the risks revolving around non tangible assets (data), and network related risks. With growth in the reliance for technology in all areas of business, and the heightened threat of outsiders trying to access information the threat of these risks has increased significantly.
QBE has designed a product to mould with the needs of clients and yet also cover the range of exposures that companies now face.
One of the firm beliefs of QBE is being able to back up the quality of our products with a quality claims handling service. To enable us to continue provide the highest standards on our new Cyber and Data Security product, QBE has teamed up with red24 to ensure that the 24hour response that clients should expect and need can be met.
2011 Government report estimates the value of cyber crime to the UK economy at £27 billion a year, £21 billion of this being to businesses, £2.2 billion to government and £3.1 billion to citizens.
Of the £21 billion, Intellectual property theft cost £9.2bn, industrial espionage £7.6bn, this was followed by extortion, which cost £2.2bn, and direct online theft, which cost business £1.3bn. Some £1bn was lost through theft of customer data.
The average cost to a large organisation following a data security breach
| Information security breach survey 2010 (large organisations) | |
|---|---|
| Business disruption | £200,000 - £380,000 - Over 2-5 days |
| Time spent responding to the incident | £6,000 - £12,000 - 15-30 man days |
| Direct cash spent in responding to the incident | £25,000 - £40,000 |
| Direct financial loss (e.g. loss of assets, fines etc) | £25,000 - £40,000 |
| Indirect financial loss (e.g. theft of intellectual property) | £15,000 - £20,000 |
| Damage to reputation | £15,000 - £200,000 |
| Total cost of worst incident on average | £280,000 - £690,000 |
| 2008 comparative | £90,000 – £170,000 |
Source: Information Security Breaches 2010
Essential covers
Public Relations, Crisis Management, Forensics and Security Specialist Services – If something goes wrong then it’s all well and good having cover for potential claims that may be made, but what happens when the incident is spread all over the papers? Bad press can have a major impact on anyone and can take a huge amount of time, effort and cost to rebuild. With a QBE Cyber policy comes the full support of experts at red24. With a 24 hour hotline to assist in controlling and delivering a PR response and forensics teams to work out what has happened and rectify (if the extension has been purchased) the impact to your business can be minimised.
Information and communication asset rectification costs – if systems have been damaged or data lost, it can be time consuming and expensive to repair or replace the systems. This cover will put a business back to the position that you enjoyed before the incident.
Cyber Business Interruption costs – If systems or data are damaged or lost, it is highly likely that the functionality of the company will be restricted if not stopped. This cover will indemnify the insured for lost profit following a cyber incident.
Regulatory defence and penalties – The area of data security is continually moving with more and more responsibility being placed on companies. Cover will extend to cover fines imposed by government or public authority regulator against the insured to the extent of insurable by law.
Privacy breach costs cover – Reform of European Data protection laws mean that companies will be required by law to notify data protection authorities and data subjects where there has been a data loss. These laws are anticipated to come into play in mid 2012. This section of cover provides cover for the costs incurred in notifying those affected, credit monitoring of those affected where necessary and also the costs of setting up a call centre to field enquiries of concerned clients.
Dishonesty of Employees - Unfortunately the people whom are employed and trusted have the greatest opportunity to access the information companies have. Password protection and restricted access are two ways of reducing the chance of something happening but don’t make companies fully secure. Unfortunately some disgruntled employees want to have the last word before they leave!
Cyber Extortion - Cyber Extortion - This cover protects the insured from potential cyber extortion. Here the policy will allow for the payment of genuine threats along with the negotiation, handling, contracting and delivery of monies.| Documentation | ||
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Cyber and Data Security Marketing Sheet |  |
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Cyber and Data Security Proposal form | |
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QBE Cyber Response Policy Wording | |
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Threatsaurus: The a – z of computer and data security threats | |
Key Contacts
Key aspects of QBE Cover:
- Failure in the handling, managing or storing of personal or corporate data.
- Unintentional violation of government or public authority legislation or regulation regarding security.
- Failure to protect against unauthorised access to, use of, denial of service attack by a hacker or transmission of a virus to your systems.
- Unintentional transmission of a virus.
- Reliance in good faith by a third party on a hackers fraudulent use of information
- Damage, destruction, alteration, corruption, copying, steeling or misuses by a hacker to your technology systems.
- Defamation
- Infringement of IP
- Improper deep linking etc arising from publishing or broadcasting.
- Dishonesty of Employees
- Financial transfer indemnification
- Public Relations, Crisis Management, Forensics and Security Specialist Services
- Regulatory defence and penalties
- Withdrawal of content
Additional modules of cover:
- Privacy breach costs cover
- Information and communication asset rectification costs
- Cyber Business Interruption costs
- Cyber Extortion cover