Cyber Risk

Nuts & Bolts:
This new program from ISO includes policy contract forms, underwriting rules, loss costs (projections of future claims) and an advisory application supplemented by an advisory underwriting guide. While some cyber risk protection has been available as subcoverage in some lines, such as inland marine and general liability, or in the specialty markets, this new line of insurance is said to bring e-commerce coverage into the standard market. The menu-based policy comprises five separate agreements: Web site publishing; network security; replacement or restoration of electronic data; cyber extortion; and business income and extra expense. Each agreement has its own aggregate limit of insurance, subject to an overall policy limit. Under the liability insuring agreements, the insurer has a duty to defend its policyholders in litigation, with defense expenses payable within the limits of the policy. Moreover, the agreements are written on a claims-made basis. The program also provides various endorsements that permit insurers to cover policyholders anywhere in the world.

Dollars:
The base deductible for the other coverages is $5,000 with other options available.

Carrier:
ISO develops policy forms, loss costs and underwriting rules for property/casualty insurers. It makes filings on behalf of participating insurers who use ISO products, such as the E-Commerce program.

States Available:
Arkansas, Delaware, District of Colombia, Georgia, Indiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, North Dakota, Ohio, Rhode Island, South Carolina, South Dakota, Tennessee and U. S. Virgin Islands.

Contact:
Dom Yezzi, (201) 469-2888.