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Insurance problems and cures

Cyber Liability again – Cloud Computing

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Cyber liability/Data Breach Liability problems continue to heat up.

A North Jersey Law Firm (Mandelbaum, Salsburg) is putting on a seminar:  Hacked to Death.  They outline how cyber liability and data breach are threatening businesses, even those that never thought they could have a problem.

A major insurance company, CNA, is offering education to agents to try to bring them up to speed on the threat to business.  Here’s their Technology Underwriting Director’s comment at 8:00 AM 9/14/2012.

“In an effort to manage expenses, more businesses are transferring their back-office technology operations to “The Cloud”. They save money. But, they have not transferred their primary liability.

  • Who is responsible for your Insured’s data…that was “transferred” to The Cloud? Your Insured is.
  • How does the standard Property & Casualty respond? Not Covered

~Business Interruption…this is not a tangible loss. Not covered under Property.
~Privacy Injury…General Liability has been amended to exclude intangible property damage. Not Covered under General Liability

~Network Security Breaches…Not Covered because they have not purchased coverage ”

If you would like more information about cyber liability and data breach, Click through here for the GBW Insurance page, or call us at 1-800-548-2329.  Or click the Mandelbaum, Salsburg link above.

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