Data Breach

Cyber Liability and D&O

One click is all it takes to order goods, exchange payment, and have the items shipped and delivered to a doorstep within hours.

But what happens when that one click is not used to facilitate commerce but rather used to intentionally or even accidentally disrupt a network? When one click releases a malicious code causing an assembly line to come to a screeching halt? When one click transfers millions of dollars to a fraudulent account? When one click by a rogue employee disseminates the contents of personal files to the public? In these instances, who is ultimately responsible?

In recent cases, fingers have pointed directly at the board of directors. Since 2013, several shareholder derivative suits have been filed following network security breaches. Defendants have included Home Depot, Horizon Blue Cross Blue Shield, Target, Wyndham, and Wendy’s. Technology is changing at a rapid pace, and it is clear that consumers and shareholders have high expectations for businesses and those who run them.

Allegations in these network security cases have included breach of fiduciary duty, negligence, breach of implied contract, and violation of various state and federal statutes. Interestingly, most of the aforementioned cases have been dismissed (or settled) – apart from Wendy’s, which is still in its early stages. These dismissals are showing that the plaintiffs are having difficulty: (1) proving corporate mismanagement as a direct cause of harm from a data breach, and (2) showing actual compensatory injuries as a direct result of the breach. Courts have been dismissing cases in which actual damages have not been proven.Read More »Cyber Liability and D&O

Reduce Risk from Wearables

Reduce Risk from Wearables

Image courtesy of franky242 at freedigitalphotosnet

With the growth in wearable technology across all types of industries, companies that never before considered themselves in the technology business face new risks they need to be prepared for. Being aware of these threats and following strategies to help protect against them can help businesses focus on the growth opportunities that connected technologies make possible.

How Does Wearable Technology Work?

Wearable technology combines form and function, integrating the functionality of once-bulky devices into wearable gear in the form of watches, eyeglasses and more. These types of devices follow a common basic template for how they work. First, sensors capture impulses and translate them into actionable data. Then, microprocessors extract, transform and load data to a transmittable format. Finally, transmitters wirelessly send data to cloud storage for further processing and reporting.

With applications ranging from health and fitness monitoring to employee monitoring and safety, people can expect tremendous expansion driven by the health care industry, the corporate sector and consumer demand. According to PwC, over 80% of consumers said an important benefit of wearable tech is its potential to make healthcare more convenient, and 68% said they would wear employer-provided wearables streaming anonymous data to an information pool in exchange for lower health insurance costs.¹

What Are the Risks?

Read More »Reduce Risk from Wearables

Cyber Liability Insurance Coverage for Financial Institutions

A significant number of financial institutions have been victimized in recent months and years. Among those publicly acknowledging breaches were J.P. Morgan Chase, Bank of America, Citigroup, Sovereign Bank and Royal Bank of Scotland (RBS).  Numerous smaller institutions have also been targeted by hackers and phishers.

Recent Breaches at Financial Institutions

Total Bank (Miami, FL)
In July 2014, the bank notified 72,500 customers that their account information was potentially exposed after an unauthorized third party gained access to the bank’s computer network. Information obtained by this unauthorized third party included names, addresses, account numbers, account balances, Social Security numbers and driver’s license numbers.  The bank is offering 12 months free of credit monitoring services for those that were affected.Read More »Cyber Liability Insurance Coverage for Financial Institutions

Risks Related to Bring Your Own Device (BYOD)

At one time, people scoffed at the idea of a personal computer in every home. Today, we not only have high-speed Internet available in our homes, but we also connect to the Internet at will with a variety of mobile devices from wherever we happen to be.

The most complete and effective defense against the risks of BYOD is to ban employees’ use of personal devices for work-related activities. However, abstinence can be a tough sell to employees, and non-compliance can be difficult to control. The smarter approach is to put a strong policy in place, educate employees about best practices and take actions that will manage the risk as much as possible.

With BYOD becoming widespread, it is important for businesses to be proactive about personal device risk management. Our hope is that this blog post will help companies chart a path for creating the most effective corporate policies and protections.

Why BYOD is a problem:

[one_fifth][note title=”31 PERCENT” align=”center”]connect to their company’s network from unsecured free or public wi-fi.[/note]  [/one_fifth]

[one_fifth][note title=”46 PERCENT” align=”center”]share their personal devices with others, opening the door to unintended access to corporate data.[/note] [/one_fifth]

[one_fifth][note title=”33 PERCENT” align=”center”]say the company data they use and store is not encrypted.[/note] [/one_fifth]

[one_fifth][note title=”25 PERCENT” align=”center”]have been a victim of hacking or malware on their personal devices.[/note] [/one_fifth]

[one_fifth_last][note title=”Statistics” align=”center”]like these are frightening for security-conscious corporate IT teams.[/note] [/one_fifth_last]

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Cyber Liability Coverage for Non-Profits

News of cyber-crime and instances of massive data breaches are increasing each year. The headlines have been grabbed by major data breaches at discount retail chains, restaurant chains, financial institutions, video game developers, health care providers, government agencies and more. The Pew Research Center estimated this year that 18 percent of adults who engage in online activities have been the victims of stolen information, including Social Security numbers, addresses, or banking information – an increase from 11 percent in 2013.

And with each instance comes increased awareness of the need for cyber liability coverage, a painful but important lesson in the ways 21st century crime can infiltrate a business – and its customers’ wallets. These infringements are happening with increasing regularity, breeding mistrust among consumers and wreaking havoc with companies that are left scrambling to pick up the pieces from these financial (and public relations) disasters. As a result, some estimates indicate that cyber liability insurance sales will double in 2014 from $1 billion just last year.Read More »Cyber Liability Coverage for Non-Profits

Museums and Cultural Institutions: Unique exposures

Goudi Building Museum

Your priceless collections and exhibits are what pull visitors through your doors. But keeping those visitors safe – as well as your employees, volunteers, building and reputation – is what keeps those doors open. Travelers has years of experience working with museums and cultural institutions. We understand your industry. We can help you with your insurance needs – from protecting your fine art collections, to covering your property risks to providing general liability coverage to workers compensation.

Fine art expertise

We offer Museums and Cultural Institutions customized product and service offerings. Our Inland Marine division is a Fine Art market leader that provides flexible solutions for your unique needs:

  • Local underwriting presence with fine art expertise
  • Broad, worldwide coverage at current market value
  • Coverage for exhibitions, loans and items while in transit
  • High capacity for high-value collections
  • On-site risk control consultations to help enhance facility and collection management
  • Dedicated fine art claim team committed to proper claim handling for unique valuable objects
  • Access to our Special Investigations Group who focuses on theft prevention and recovery of stolen property
One company for property exposures

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Is Your Child Increasing Your ID Theft Risk?

child safety, id protection, identity theft protection, online safetyWe’ve talked a lot about protecting your kids from identity theft. Have you ever considered the impact your kids might have on YOUR credit score? Children and teens use the internet a lot and if they aren’t careful they could potentially expose people in your house to identity theft. Teach your kids how to stay safe online. This important lesson won’t just protect them, but will protect your identity as well.

To keep your identity safe and teach your kids good online behavior, make sure they understand these essential internet safety rules:Read More »Is Your Child Increasing Your ID Theft Risk?

Top 10 Corporate Risks in 2014

corporate risksBusiness interruption (BI) and supply chain, natural catastrophes and fire/explosion top the list of company risks in 2014, according to the 3rd Annual Allianz Risk Barometer, which surveyed over 400 corporate insurance experts from 33 countries.

The survey highlights the increasing complexity of business risks, including a combination of new technological, economic and regulatory related risks, potentially creating a systemic threat for businesses and suggests that companies can respond to these growing challenges through stronger internal controls, combined with a holistic approach to risk management.

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Fortune 500 Company Suffered Data Breach

If a Fortune 500 company like TARGET can be hacked, what makes you think the average small business won’t be? It is a fact that Data Breaches are on the rise.

A data breach is a loss, theft, accidental release or accidental publication of Personally Identifiable Information (PII) including name, SSN, and bank and credit card accounts.
Any business. small or large, that handles or stores any private business, customer, and patient or employee data is at risk.Read More »Fortune 500 Company Suffered Data Breach

Protect your personal information from online risks

Going online has become part of everyday life – whether for shopping, sending email or paying bills and managing accounts. However, many worry that technology-related issues, including unsolicited emails and unsecure websites, can affect information stored online. The 2013 Travelers Consumer Risk Index shows that 41% of Americans worry about computer and technology issues. These were ranked second among the top five risks causing the most concern. Taking precautions when browsing the Web can help reduce your risk of a cyber attack. Read these tips to learn how to help stay safe online.Read More »Protect your personal information from online risks