As cyber risk becomes a larger threat to companies of all sizes, the associated costs and record breaches are staggering. A recent study found that the average cost of a data breach in 2010 was $7.2 million.
According to another study, there were 515 million records breached in the U.S. alone through 2010. Several large scale data breaches have already occurred this year, causing this number to rise at a significant rate.
CyberRisk, a new product offered by Travelers Bond & Financial Products, will limit client cyber exposures and manage associated risks.
“Cyber risks leave businesses exposed regardless of size, industry or track record,” said Jason Glasgow, CyberRisk product manager for Travelers Bond & Financial Products. “While some business owners have employed tactics to minimize opportunities for exposures, the risks go far beyond a single hacker accessing information. From dealing with information leaks to meeting expenses associated with crisis management, business owners need to be prepared to manage their cyber liability.”
Insureds can build a custom CyberRisk policy that fits their business needs based on 10 coverage options. These options address exposures and the ripple effects associated with a cyber-related event including:
Third Party Liability coverage:
Network and Information Security Liability
Communications and Media Liability
Regulatory Defense Expenses
First Party coverage:
Crisis Management Event Expenses
Security Breach Remediation and Notification Expenses
Computer Program and Electronic Data Restoration Expenses
Funds Transfer Fraud
Business Interruption and Additional Expenses
Source: The Travelers Companies, Inc.
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