1 / 9

Non Physical Business Interruption

Non Physical Business Interruption. Malcolm Randles, Underwriter, Kiln Syndicate 510. 01 February 2011. Severity/Probability Matrix. Information Warfare. Cyber Terrorism. Cyber Crime. Financial Loss. Malicious Hacking. Vandalism. Experimentation. Event Probability.

hypatia
Télécharger la présentation

Non Physical Business Interruption

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Non Physical Business Interruption Malcolm Randles, Underwriter, Kiln Syndicate 510 01 February 2011

  2. Severity/Probability Matrix Information Warfare Cyber Terrorism Cyber Crime Financial Loss Malicious Hacking Vandalism Experimentation Event Probability Network Security Threats

  3. First Party Technology/Network Risks • Direct physical loss - property policy • Extortion • Direct non-physical damage • Software failures • Operational mistakes • Malicious Code (viruses) • Denial of Service • Vandalism/Malicious Acts • Terrorism • Contingent Business Interruption • Upstream/downstream - suppliers, chief customers • Co-dependency on Other Vendors Infrastructure (BPO and IT)

  4. Context of risk

  5. Cyber First Party Coverages Data/Electronic Information Loss • Covers the cost of recollecting or retrieving data destroyed, • damaged or corrupted due to a computer attack Business Interruption or Network Failure Expenses • Covers cost of lost net revenue and extra expense arising from a computer attack and other human-related perils. Especially valuable for computer networks with high availability needs. Cyber-extortion • Covers both the cost of investigation and the extortion demand amount related a threat to commit a computer attack, implant a virus, etc.

  6. Key Kiln Differentiators • Coverage includes administrative or operational mistakes as defined and aspects of accidental damage or destruction, not just computer attacks • No small internal indemnity limits per hour • No sub-limit for virus exposure • Outsourcing/offshoring risks – contingent business interruption and data damage – full policy limits • Ability to endorse agreed amount for BI/EE with peak season adjustment (for example, retailers) and asset value of data

  7. Key Kiln Differentiators • Minimum 4 hour waiting period, 10% coinsurance • Reimbursement for employee working time to replace, restore or recreate electronic data (endorsement on predefined billable hrs) • Expanded coverage and limits for Special Expenses - $500,000 or 25% of loss, whichever is greater. Within special expenses, sublimits for $250,000 Customer Notification Expenses and $250,000 Public Relations Expenses • Rogue employee coverage for computer attacks • No “shortcomings in security” or similar exclusions – “computer system is protected by security practices and system maintenance procedures that are equal to or superior to those disclosed in the proposal [application]”

  8. Key Industry Groups • Financial services • Health care • Hospitality/Travel • Retail • Technology/Telecom • Media Services • Manufacturers

  9. Summary • Threat is real. • High value class actions and regulatory enforcements • Tailored products • Balance of intangible v tangible is changing • It’s a board room/D&O issue – network availability and digital assets are critical to infrastructure and revenues. • Many clients think they have coverage under traditional policies or purchased first generation cyber products with major limitations.

More Related