JAMA MEMBER EXCLUSIVE
CYBER LIABILITY PROGRAM
JAMA Member Exclusive Cyber Liability Insurance Program
Join forces with JAMA and Walton to acquire a prompt, streamlined, and all-encompassing quote for a comprehensive cyber insurance policy. By choosing JAMA CYBER in partnership with Walton, you'll not only receive a comprehensive plan for cyber protection, but also gain access to additional services and resources. These services and resources include experienced dedicated claims department, and access to Walton Engage, which encompasses Employee Navigator and HR Client Portal - a thorough HR platform complete with employee onboarding, paperless benefits administration, time, and attendance, risk management, employee LMS system, as well as software for creating an employee handbook, and everything in between.
Among small businesses with fewer than 250 employees, the average reported cyberattack cost was about $25,600, according to a 2021 report from Hiscox, an insurance provider. That amount could be enough to shutter some small firms.
Many manufactures in our community have been targeted by cyber security threats. We have insurance solutions for your business to help protect you in the event of these malicious attacks as well as education for you and your team.
CLAIMS SCENERIO EXAMPLES
CLAIMS SCENERIO
OUTDATED SOFTWARE | Retail Trade
The following example is meant to illustrate a potential scenario you might encounter. It
may not necessarily represent details of a specific claim.
SITUATION:
Hackers penetrated an electronics retailer's network from a vulnerability in an outdated software application. 4,600 company names, contact information and credit card information were compromised.
Local authorities received multiple complaints of suspicious activity, leading the retailer’s IT department to discover an unauthorized user had accessed the system.
Once discovered, the retailer called their insurance carrier who immediately brought in forensic experts to initiate the retailer’s IT recovery plan and notification program.
CLAIMS SCENERIO
RANSOMWARE | Retail Trade
The following example is meant to illustrate a potential scenario you might encounter. It
may not necessarily represent details of a specific claim.
SITUATION:
An employee of a music instrument retailer accidentally clicked on a malware link. The virus was downloaded onto the company server causing all data to be encrypted. The employee then received an email demanding $50,000 paid in Bitcoin within 48 hours to release their data files.
2,000 customer records including name, address, phone and credit card information were encrypted. The retailer called their insurance company’s cyber response team, who responded by assigning a “breach coach,” which is covered as part of the retailer’s stand-alone cyber policy.
The breach coach sent in a forensics team to assess the situation, including any computer or electronic hardware damage, and determine if paying the ransom was necessary. Concurrently, the insurance company confirmed coverage and assisted with opening a claim to minimize the effect of business interruption.
CLAIMS SCENERIO
LOST HARDWARE | Retail Trade
The following example is meant to illustrate a potential scenario you might encounter. It
may not necessarily represent details of a specific claim.
SITUATION:
An employee of An online watch store lost their laptop. An Excel file on the computer contained customer records of 920 customers including the customer names, contact information and credit card information.
Once the loss was realized, the retailer immediately notified their insurance company who provided a “breach coach” to assess the damage and help the insured comply with regulatory and notification requirements.
CLAIMS SCENERIO
FORMER OR ROGUE EMPLOYEE | Retail Trade
The following example is meant to illustrate a potential scenario you might encounter. It
may not necessarily represent details of a specific claim.
SITUATION:
A regional jewelry retailer was hacked by a former employee, whose user credentials were not deleted when they were terminated. The employee sold 4,600 customer records on the dark web including customer names, contact information, and credit card information.
The retailer notified their insurance company immediately. The carrier provided forensic expertise, legal services, and media relations help to investigate and control the damage.
In addition, the insurance company enlisted a “breach coach” to guide the retailer in managing their actual and reputational damage.
CLAIMS SCENERIO
SOCIAL ENGINEERING | Retail Trade
The following example is meant to illustrate a potential scenario you might encounter. It
may not necessarily represent details of a specific claim.
SITUATION:
A travel apparel retailer’s emails were accessed by an attacker who, posing as the General Manager, asked an employee to contact the broker’s bank with instructions for funds to be transferred into the hacker’s bank account.
When the retailer discovered that unauthorized payments were made totaling $125,000, they immediately contacted their bank to freeze the funds and notified their cyber insurance carrier. Together, they were able to recover $102,000 of the unauthorized transactions.
FREQUENTLY ASKED QUESTIONS
WHAT IS CYBER INSURANCE?
When a breach occurs, cyber insurance covers the range of expenses that arise. These include identifying and solving the breach, recovering data, customer notifications, PR costs, possible credit monitoring expenses, legal expenses, potential fines from compliance regulators, extortion costs from ransomware, and general business interruption.
DO HACKERS REALLY BOTHER WITH ATTACKING SMALL BUSINESSES?
Yes. Hackers use technology to scan the internet for businesses with weak defenses regardless of the size of the business. A recent Verizon report notes that 43% of all cyber attacks are against small businesses. Worse, 63% of small businesses had experienced a breach in the last 12 months. Any business with a computer and an internet connection is at risk – even if youdon’t sell anything on your website.
WHAT IS COVERED?
First-party coverage – Intends to cover damages a business suffers because of a cyber breach. This can include things like investigative services, business interruption coverage and data recovery.
Third-party coverage – Intends to cover damages if a business’ customers or partners are affected by a cyber attack. This can include legal fees, settlement costs, security failures and media liabilities.
Cyber crime — Intends to cover damage due to any type of illegal activity that occurs using digital means. Examples of cybercrime are extortion/ransomware, phishing, social engineering, and wire transfer fraud.
DOESN’T MY CURRENT BUSINESS INSURANCE INCLUDE CYBER ATTACKS?
Many general business protection policies only partially cover damage from cyber events, if at all. As mentioned above, cyber coverage protects against the vast array of possible damages, expenses, and lost business that can occur from a cyber attack.
WHAT SHOULD I CONSIDER WHEN CHOOSING BETWEEN PURCHASING A STANDALONE CYBER POLICY VS. ADDING AN ENDORSEMENT TO AN EXISTING POLICY?
To be fully protected, ensure you have all coverages – first-party, third-party, and cyber crime. Further, since some cyber events can result in large expenses, confirm you have adequate sublimits for each of the three above coverages.
WHY DO I NEED A ``BREACH COACH``?
If your company gets hacked, you will need a breach coach to get your business back up and running fast. When a breach occurs, you need to assess and contain the damage, notify affected parties (e.g. customers and vendors), evaluate and act on the legal ramifications from agitated customers to regulatory bodies, and more. A breach coach will quickly assemble the right response team to deal with these issues. Without an expert it all falls on you, costing you time and money while adversely affecting your business. Fortunately, most insurance companies now provide a breach coach as part of a greater suite of services when you purchase stand-alone cyber insurance coverage.
DO SMALL BUSINESSES NEED CYBER INSURANCE IF THEY PRACTICE GOOD CYBER HYGIENE?
Being properly protected definitely helps. However, there is no way to fully protect against new threats. Hackers are always adapting to overcome cyber defenses with new versions of current threats or creating brand new methods of attacking businesses. Human error can also be a factor. Easy-to-hack passwords, phishing emails, or even a lost laptop also present potential entry points for a cyber criminal. Additionally, a third-party vendor could be attacked, impacting your ability to do business and exposing your data. Even if you use a third-party vendor for business services, as the data owner you may be legally responsible. A thorough cyber insurance policy is part of your overall risk management plan to ensure your business runs smoothly.
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