Cyber Insurance has become a scorching topic in the insurance industry over the past few years. We wanted to take this post to explain why charter schools should consider purchasing this coverage and how it can help protect them.
Every organization now stores and transfers sensitive information electronically. This leaves companies of every size, including charter schools, at risk for costly damages and liabilities resulting from data security breaches.
What Does Cyber Insurance Cover?
A standard cyber insurance policy provides coverage to charter schools for the following:
1. Network and information security liability — claims are arising from the unauthorized access to data containing identity information, the failure to provide notification of data breach where required by law transmission of a computer virus, and liability associated with the inability to provide authorized users with access to the company’s website.
2. Communications and media liability – covers claims arising from copyright infringement, plagiarism, defamation, libel, and slanders in electronic content, such as websites and email.
3. Regulatory defense expenses – coverage for governmental claims made due to network and information security liability or communications and media liability.
Additional Cyber Insurance Coverages
Many cyber insurance policies also provide some additional first-party coverages:
1. Crisis management event expenses – coverage for public relations services to mitigate negative publicity due to cyber liability.
2. Security breach remediation and notification expenses – provides coverage for:
- Costs incurred to determine whose identity information was accessed.
- Notification to those individuals of the security breach.
- Credit monitoring.
- Identity fraud expense reimbursement for those individuals affected by the security breach.
3. Computer program and electronic data restoration expenses – coverage for costs incurred to restore data lost from damage to computer systems due to computer viruses or unauthorized access.
4. Computer fraud – coverage for loss of money, securities, or other property due to unauthorized access to the computer system.
5. Funds transfer fraud – coverage for loss of money or securities due to fraudulent transfer instructions to a financial institution.
6. E-commerce extortion – coverage for money paid due to threats made regarding an intent to fraudulently transfer funds, destroy data, introduce a virus or attack on a computer system, or disclose electronic customer information.
7. Business interruption and additional expenses – coverage for loss of income and the extra expense incurred to restore operations due to a computer system disruption caused by a virus or other unauthorized computer attack.
If you are interested in getting a cyber insurance quote for your charter school, please feel free to call our office.