Presented by ABA Insurance Services

The PIA Partnership Presents: Cyber 101

❑ Fraudulent Funds Transfer

❑ Extortion/Ransomware

❑ Social Engineering

❑ Business Interruption

❑ Data Breach/Privacy

❑ Network Security

❑Media Liability

Essential Information You and Your Clients Need to Know About Cyber

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Presented by ABA Insurance Services 2

Presented by ABA Insurance Services

David Rupnow, CPCU, RPLU

Product Manager

D: 216-220-1293 | E: drupnow@abais.com

Dave has over 25 years of experience in

underwriting and managing professional liability

insurance programs to the small-medium

business niche. With a focus on improving the

efficiency and agent experience to rate/quote/bind

insurance, he was key in the development and

implementation of ProCision®, a new, next

generation, multi-product quoting platform

available through ForAgentsOnly.com.

Lisa Micciche, CPA

Product Manager

D: 216-220-1297 | E: lmicciche@abais.com

With over 15 years of underwriting, financial

and management experience, Lisa is

responsible for product development and

modifications to existing products, as well as

sales, claims, and competitive analysis for both

the Bank and Small Business Insurance

Programs of ABA Insurance Services. She was

instrumental in the development of the Bank

Program’s cyber insurance product.

ABA Insurance Services is a managing general agency, program administrator and wholesale brokerage that

offers professional and management liability lines, financial institution bonds, surety bonds, property, and general

liability insurance to banks, small businesses and nonprofit organizations.

Presented by ABA Insurance Services

What we will cover in this webinar

1. What is Network Security?

2. Why Network Security Matters

3. How Cyber Insurance Can Help

4. Coverage Overview

5. Additional Points to Consider

6. Is it Covered?

7. Q&A

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© 2018 ABA Insurance Services Inc. dba Cabins Insurance Services in CA, ABA Insurance Services of Kentucky Inc. in KY, and ABA Insurance Agency Inc. in MI. Notwithstanding any

language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims

examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free.

Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific

contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any

links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by

ABAIS of the linked materials. All rights reserved.

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law.

Network security refers to maintaining the

integrity of your computer systems, network

and data. A good network security platform will:

▪ Restrict access to your network

▪ Prevent malware from entering your system

▪ Prevent malware from spreading through

your system

4

What is Network Security?

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law.

1. Your systems and your data are assets.

▪ You need to protect them.

▪ Do you insure your home?

▪ For similar reasons, you should insure your network.

2. Cyber Crime is a thing.

It is predicted that cyber crime damages will cost the

world $6 trillion annually by 2021, making it more

profitable than the global trade of all major illegal

drugs combined. According to a former NSA Chief,

“This represents the greatest transfer of economic

wealth in history.”

5

Why Network Security Matters

https://www.csoonline.com/article/3153707/security/top-5-cybersecurity-facts-figures-and-statistics.html

http://foreignpolicy.com/2012/07/09/nsa-chief-cybercrime-constitutes-the-greatest-transfer-of-wealth-in-history/

http://cdn1.itpro.co.uk/sites/itpro/files/styles/insert_main_wide_image/public/2018/02/screenshot_2018-02-

20_at_14.27.02.png?itok=f01_2Ilh

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law.

3. You’re at risk.

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Why Network Security Matters

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. 7

How Cyber Insurance Can Help

Insurance pays for third party damages and

legal fees incurred as a result of:

▪ unauthorized use or access to your systems

▪ virus transmissions

▪ distributed denial of service attacks (DDoS)

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law.

Network Security Liability provides E&O type coverage for:

▪ Unauthorized access to the Insured’s network or unauthorized use of the Insured’s network

▪ The failure to provide an authorized user with access to the Insured’s network (DDoS)

▪ The transmission of a virus from the Insured’s system to a customer or other third party system

▪ A third party tricking a customer or business partner into releasing private information or transferring

money by impersonating the Insured’s company or one of its employees

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Coverage Overview – Network Security Liability

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. 9

Additional Points to Consider

▪ Coverage is contingent on a Claim

being made against the Insured

▪ What is a Claim?

A situation in which someone makes a

written demand for financial or other

compensation based on an allegation of

wrongdoing on the part of the Insured.

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. 10

Network Security Liability: Covered Claim, Yes or No?

Answer: No

This is a first party expense. The Insured

directly incurred the loss. Coverage for the

incident would be found under a Data

Restoration clause in a cyber policy but

because there is no Claim or demand brought

against the Insured for allegations of

wrongdoing, this does not fall under the

category of a Network Security Liability Claim.

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. 11

Network Security Liability: Covered Claim, Yes or No?

Answer: Yes

The failure to provide authorized

users access to an Insured

system is an exposure covered

by the Network Security Liability

portion of a cyber policy.

Presented by ABA Insurance Services All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are

not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. 12

Network Security Liability: Covered Claim, Yes or No?

Answer: Yes

Liability incurred from the failure to prevent

a DDoS attack is covered by the Network

Security Liability portion of a cyber policy.

Presented by ABA Insurance Services 13

Questions

The PIA Partnership Presents: Cyber 101Available now at www.pianet.com/pia-partnership/cyber101

Join us for the next Cyber 101 webinar:

Website Media LiabilityTuesday, July 10, 2018 at 2:00 p.m. Eastern