A Bahamian insurance broker will next week launch a cyber liability product that can offer $1 million worth of coverage for just a $%400 premium.
NUA Insurance Agents & Brokers, the wholly-owned Bahamas First Holdings subsidiary, says its product will insure businesses against the type of damage that US retailer, Target, incurred when milions of customers’ debit and credit card details were stolen via cyber attack.
“We have noted that there have been more and more reports of computer hacking disrupting companies’ computer systems, and leaking sensitive third party information stored on companies’ computer systems,” said NUA Insurance Agents & Brokers’ assistant managing director, Stanford Charlton.
“This stolen third party information in most cases is taken to be used with criminal intent to defraud a business. The Target superstore loss, where a large portion of the details on their clients’ credit card identities was stolen, also made it quite real that this type of risk is here at our doorsteps.”
Mr Charlton added: “You could also have an instance where a media company’s employee posts libelous statements about a competitor on their company Facebook page.
“With that being said, we know that these types of risks will become more and more prevalent in the Bahamas. Cyber liability insurance was a product created to minimise the effects of the losses that result from these risks, and we wanted to be proactive in making it available in the Bahamas very early on.
“It should also be mentioned that there could be breaches to the Data Protection Act, and a company can have fines levied against them in the event it is discovered that adequate measures were not in place to safeguard clients’ personal data. Cyber liability insurance affords some protection against those fines.”
Mr Charlton said e-commerce companies and those undertaking transactions over the Internet are not the only ones who face cyber risks.
He said companies which store personal data, are reliant on computer or telephone networks, hold digital information or use the Internet all face these exposures.
Accounting firms, law firms, retailers, entertainment and media, professional service companies, doctors, dentists, pharmacists, walk-in clinics, utilities, manufacturers and wholesalers are also at risk.
NUAS said key features of the coverage it will launch on April 24 include: Cyber liability, privacy liability and privacy breach notification costs; coverage for data held ‘in the cloud’; comprehensive media liability, including coverage for user generated content; defamation, including libel and slander; invasion of privacy; intellectual property rights infringement; cyber crime including identity theft, wire fraud and phishing scams.
“Various industries like retail stores, hotels, airlines, media, accounting and law firms and manufacturers would be able to benefit from cyber protection against the risks prevalent,” said Mr Charlton.
“It should also be noted that many professionals believe their professional indemnity insurance policy should cover them against any and all possible scenarios, but there are certain exclusions to the cover, and cyber liability insurance is the blanket cover that protects against these exclusions.”
Mr Charlton said premium costs were dependent on the type of business, its annual turnover and the number of employees it has. Premiums could be as low as $400 for a $1 million limit, he added.
“The cyber liability insurance facility limits vary for different aspects of cover, and can range from $250,000 to $2 million. We also have the capability to look at the risk profile of each client individually, as the $2 million limit may not be adequate. In these cases we can go in the London open market and attain higher limits,” said Mr Charlton.
NUA is hosting a product launch cocktail reception at the British Colonial Hilton on April 24 from 6.30 pm to 8.30pm. Its security, cyber and network coverage will be available immediately at the launch.
Charles Juarbe, divisional director for FINEX Global & Willis, will be the presenter at the launch, which is expected to be attended by 75 invited guests.
“We trust that they will see the benefits of this coverage in these very crucial and uncertain economic times. Insurance protection is one of the keys, in my opinion, to minimising the effects of this uncertainty,” said Mr Charlton.