Many of you may have seen several reports on the news over the last year of hackers getting ahold of some pretty large corporations and having access to their customer’s private data.  Because of this, Royal Coachman has elected to have a Cyber Insurance Policy. This is something most limousine companies don’t carry, but we feel is essential with technology playing such a large part of all our businesses, to make sure our customers are covered as well as us in the event of a breach with data on our computers. Another example of why Royal Coachman has Cyber Insurance is that employees or drivers takes credit card information. We want to have that exposure covered and that is what the Cyber policy provides. Please note, however, although we have it, we’ve never had a situation where Cyber Insurance was needed to date.

What does the Policy Cover?

Our Cyber policy provides coverage for data stored in our computer systems as well as on paper.  Following types of acts that are included in our coverage:

• Hacker Attack – someone hacks into your computer system and steals customer data;
• Cyber Extortion – When someone says, “give me money or I will shut down your website.”  After this has been filed with the policy Cyber Liability may pay the extortionist so your website does not go down;
• Cyber Terrorism – When someone is not requesting money but makes a threat to shut down your website if you don’t do something they want.  No money has been exchanged but they are threatening to stop your business for self gain.
• Virus Transition – if there is a virus on your computer that leads you to lose all of your customer data;
• Human Error – a person does not shred important paperwork, or leaves valuable data available to get in the wrong hands:  Old files with customers’ social security numbers was meant to be shredded but was thrown out in the trash.  Someone takes this information and sales it on the black market;
• Employee Sabotage – an employee is upset with the owner so (s)he decides to get “even” by taking or giving out customers information;
• Damage to Reputation – public is aware that your company gave out its customer’s credit card information, to help rebuild your reputation.
• Power Failure – If data is lost due to a power failure;
• Natural Disaster – If data is lost due to a natural disaster;

Who might need Cyber Insurance?

Any organization that holds sensitive customer information (credit card info, address info) or employee information (date of birth, medical issue, payroll, etc.) might need Cyber Insurance.  48 States have enacted privacy breach laws to protect consumers.  Many states require that companies must notify their customers whenever there is a security breach of their Personally Identifiable Information.  The law applies based on residency of the customer, not the company responsible for the breach.  .

What would happen if a Cyber Breach were to occur?

After a Cyber Breach, it is our legal responsibility to notify each person affected and alert them of what information is out there.  Clients may then need to be set up with Credit Monitoring and the length of time of this depends on the State law.  Cyber Insurance will also help restore your reputation and cover for loss of customers due to this breach. An official claim would be processed if this occurred.