Cyber Risks for Public Entities

02.21.2017


At the 2017 PARMA Conference, a panel discussed cyber liability concerns for public entities. The panel was:

Common Patterns of Cyber /Claims:

These are the most common sources of cyber breaches. You should make sure your policy covers these things.

What is Cyber Liability Insurance:

Cyber risk insurance is evolving. The policies are designed to protect from liability associated with

Self-incurred expenses incurred to investigate, do credit monitoring, make appropriate notifications, etc are also covered under the cyber liability policy. This includes legal expenses. Cyber insurance has both first party coverage and third party coverage in the same policy. It also could covers property damage associated with a cyber breach.  Unlike many other coverages, cyber policies also cover regulatory liability (fines and penalties).

One of the biggest benefits of the cyber policy is the resources that your carrier can provide in managing these issues. They have significant expertise in these areas to help you navigate a cyber breach. Make sure you report the claims immediately to the carrier.

Active Cyber Claims They are Seeing:

The panel gave many examples of public entity claims they are currently responded to.

The exposure on such claims can be anywhere from a few thousand dollars to several million dollars. It can cost hundreds of thousands of dollars just to investigate a data breach to determine whether any information was compromised.

Mitigating Risks

The foregoing was originally published on Conference Chronicles Blog and is reproduced here with permission of the author. No further republication is permitted without the author’s consent.

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