MEARIE has partnered with NetDiligence® to provide Members with an interactive, online, cyber risk management portal, providing a valuable source of risk management tools, news and training resources. NetDiligence® eRiskHub provides tools and resources to help you understand your cyber risk exposures, establish a response plan and minimize the effects of a cyber breach on your organization.
Privacy, Cyber & Network Security Liability Insurance Coverage
MEARIE offers Privacy, Cyber & Network Security Liability Insurance as an optional endorsement to the MEARIE Liability Insurance Program.
Heightened Cyber Exposure Due to a Convergence of Three Trends:
- Companies’ increasing reliance on technology – digitization of lives/business
- The increasing value of non-physical assets – relationship between cyber risks and multiple classes of insurance
- Increasing moral and legal obligation – from the public, regulator, insurer
- Regulators’ intensified focus on protecting consumer data
- Regulation not moving as quickly as cyber criminals
Privacy remains the prevalent exposure and has historically driven the purchase of insurance.
Impact to Your Company:
Cost & Disruption
An incident can create down time to internal systems, and require staff attention and effort, without ever causing a disruption to actual revenue flow – but creating disruption and additional expense for the company related to:
- Internal Resources
- External Resources
- Communication & Notification
- Customer Demands – Short & Long Term
- Regulators – OEB and Privacy
What Makes Up the Costs of a Cyber Loss?
Whether an incident originates from a technology-based source or just an employee’s physical mishandling of private information, the result is the same: private information gets exposed and/or your computer system environment is compromised.
- Direct costs involve funds spent to accomplish a given activity such as engaging forensic experts, hiring a law firm or offering victims identity protection services.
- Indirect costs involve the allocation of resources, such as employees’ time and effort to notify victims and investigate the breach. Indirect costs also include the loss of goodwill and customer churn.
- Detection and escalation costs include forensic and investigative activities, assessment and audit services, crisis team management and communications to executive management and board of directors.
- Notification costs include the creation of contact databases, determination of all regulatory requirements, engagement of outside experts, postal expenditures, email bounce-backs and inbound communication set up.
- Post data breach response costs include help desk activities, inbound communications, special investigative activities, remediation, legal expenditures, product discounts, identity protection services and regulatory interventions.