Cyber Security Liability

Today, data breaches and other cyber crimes are becoming more common. Major corporations have made headlines due to their failure to secure sensitive personal data of their customers. Fraternal organizations are no different. 

Now more than ever it is extremely important for organizations to protect the personally identifiable information (PII) of their members. Breaches involving PII are both harmful to the individuals and the organizations involved. Individuals suffer due to identify theft, and the associated costs and inconveniences while organizations face harms that include the loss of public support, legal liability, and the costs associated with containment, remediation, and notification.

What It Covers

Cyber Security Liability insurance coverage helps organizations recover from accidental damage or destruction of electronic media, administrative or operational mistakes, and computer crime and computer attacks.

All 50 states, including the District of Columbia, have enacted legislation requiring private entities to notify individuals of security breaches of information involving personally identifiable information. The costs to properly and promptly notify, commonly in writing, and disclose the breach can be at least partially offset with the proper insurance coverage. In most cases, organizations are also responsible for providing credit monitoring services to those affected which can quickly and dramatically increase the monetary impact of this growing exposure. The average data breach cyber claim costs nearly $700,000.

Examples of Personally Identifiable Information (PII) include:

  • Name
  • Social Security Number
  • Passport Number
  • Driver’s License Number
  • Financial account numbers
  • Personal Identification Numbers (PINs)
  • Street address or e-mail address
  • Phone number
  • Other associated data that when alone may not be able to identify an individual but when associated with other data leads to identification (e.g. computer IP addresses)

Disclaimer Notice

This basic information has been prepared as information only. The actual insurance policies are subject to definitions, duties, exclusions, limitations, and various other terms and conditions. This information does not amend, extend, or alter the coverage afforded by the actual insurance policies.

Protect the Personal Identifiable Information (PII) of your members.

PII may be used to distinguish, trace, or even steal a person’s identity. 

Risk Management Recommendations:

  1. Do not store PII in your organization’s database whenever possible.
  2. Ensure there are proper database access controls in place to limit the viewing and updating of PII by certain designated staff members only.
  3. When partnering with a third-party database provider, be sure you are contractually protected in the case of a data breach.
  4. Consult with your network administrator and outside technology consultants to ensure your network is protected from outside intruders and attacks.

Questions About Cyber Security Liability Coverage?

Our experienced staff is ready to help you today. 

(800) 344-7335