Cyber Liability Insurance

Why Phly?

  • 20+ years of operating experience in the Management and Professional Liability market with superior service and coverage
  • Superior financial strength from A.M. Best (A++ XV) and Standard & Poor’s (A+)
  • Dedicated team with over 100 underwriters & claims professionals located across 13 Regional Offices
  • A multi-line policy designed for private companies of all sizes providing risk transfer solutions
  • Available coverages include Directors & Officers, Employment Practices, and Fiduciary Liability

About Us

Company Profile

Philadelphia Insurance Companies (PHLY) headquartered in Bala Cynwyd, PA, designs, markets, and underwrites commercial property/casualty and professional liability insurance products, incorporating value-added coverages and services for select industries. By maintaining a disciplined approach to business, we provide greater security for our policyholders and superior value for our shareholder. PHLY has field offices strategically located across the United States to provide superior service. Rated "A++" (Superior) by A.M. Best Company. Rated "A+" by Standard & Poor's. PHLY is a member of the Tokio Marine Group, Japan's oldest and leading property/casualty insurer.

PHLY has three underwriting divisions: Commercial Lines | Management & Professional Liability | Personal Lines

A.M. Best Rating

The Company’s two insurance subsidiaries are pooled for risk assumption and accumulated surplus. A.M. Best Company has assigned the insurance subsidiaries an "A++" (Superior) rating.

Standard & Poor’s

Assigned "A+" for counterpart credit and financial strength.

Ward’s 50®

Nationally recognized Property/Casualty as a member of Ward’s 50 Benchmark Group of insurance companies for outstanding achievement in the areas of financial strength, claims performance, and consistently favorable underwriting results.

Submission Requirements

  • Completed application (< $10M annual revenues); application (> $10M annual revenues)
  • Latest annual financial statement
  • Supplemental claim form, if applicable

Cyber Security Liability

Key Features

  • Limits available up to $20M for select risks
  • Both First and Third Party coverages available
  • Complimentary access to eRisk Hub™ cyber risk management portal
  • Excess Cyber is available for clients requiring high limits
  • Availability of complementary coverages to provide broader risk management solutions including Directors & Officers, Employment Practices, Fiduciary, and Crime
  • Quick turnaround times for proposals and policy issuance

Coverage Synopsis

Our Cyber Liability Insuring Agreements are offered on an "á la carte" basis whereby your insured can pick and choose which coverage parts they would like to purchase and their associated premiums. Your client can opt for all Coverage Limits we are offering or they can select just a single part to complement their existing risk management program.

Philadelphia Insurance Cyber Liability Insuring Agreements

  1. Loss of Digital Assets: Loss you incur as direct result of damage, alteration, corruption, distortion, theft, misuse or destruction of electronic data and computer programs.
  2. Non-Physical Business Interruption and Extra Expense: Reimbursement for income loss, interruption expenses, and special expenses as a result of the total or partial interruption, degradation in service, or failure of the computer system.
  3. Cyber Extortion Threat: Reimbursement for the extortion expenses and extortion monies resulting directly from a credible threat or series of threats.
  4. Security Event Costs (Your own direct costs for a privacy breach, security breach or breach of your privacy policy): Reimbursement for security event costs such as notification costs, computer forensic costs and credit protection services. This also includes costs incurred to minimize harm to your brand or reputation, regulatory fines and penalties(where insurable) and any monies required for a Consumer Redress Fund.
  5. Network Security and Privacy Liability Coverage (legal liability for a cyber event): Payment on your behalf which you are obligated to pay as damages and claims expenses from your acts, errors or omissions or for others for which you are responsible including outsourcers and vendors following a security breach or privacy breach.
  6. Employee Privacy Liability Coverage (legal liability for breach of employee's PII or PHI): Payment on your behalf in which you are obligated to pay as damages and claims expenses arising out of a privacy breach involving an employee's private information.
  7. Electronic Media Liability Coverage: Payment on your behalf for damages and claims expenses as a result of
    • defamation, libel and slander
    • invasion of an individuals right of privacy of publicity
    • plagiarism or misappropriation of ideas under an implied contract
    • infringement of any copyright, trademark, title, service mark
    • domain name infringement or improper deep-linking or framing
  8. Cyber Terrorism Coverage: Reimbursement for income loss, interruption expenses and special expenses directly as a result of total or partial interruption, degradation in service, or failure of the computer system which is directly caused by an act of terrorism.

For a more thorough explanation, webex presentation or conference call outlining any cyber coverage(s), please contact your local cyber/privacy underwriter.

Ten Reasons to Choose Philadelphia Insurance Companies for Cyber Security Liability

  1. First and Third Party protection in a comprehensive coverage form
  2. First Party coverage includes Loss of Digital Assets, Non-Physical Business Interruption and Extra Expense, Cyber Extortion, Cyber Terrorism, and Security Event Costs
  3. Third Party coverage includes Network Security and Privacy Liability, Employee Privacy Liability, and Electronic Media Liability
  4. Covered Cause of Loss includes administrative or operational mistakes
  5. Breach of Privacy coverage – includes damages resulting from alleged violations of HIPAA, state, federal, and foreign privacy protection rules
  6. Customer Breach Notice Expense and coverage (via sub-limit)
  7. Public Relations Expense coverage
  8. Most favorable wording for punitive or exemplary damages
  9. Electronic media peril broadly defined to include infringement of domain name, copyright, trade name, slogan, service mark on the internet or intranet site
  10. Comprehensive Interruption Expenses coverage

MISSION STATEMENT PHLY is a team of motivated, high achievers committed to delivering innovative products and unsurpassed service to niche insurance markets. By maintaining a disciplined approach to business, we provide greater security for our policyholders and superior value for our shareholder. We believe that integrity and mutual respect are the foundation of long-term and fulfilling relationships with our employees, customers, and business partners.

Target Classes

  • Manufacturer
  • Medial Office/Physicians Group
  • Oil & Gas Company
  • Retail Business
  • Service Company
  • Wholesaler
  • Many more!

Prohibited Classes

  • Adult Content
  • College/University
  • Data Warehousing/Data Broker
  • Casino/Gambling
  • Lottery
  • Mortgage Lender
  • Municipality
  • Public School District

Claim Scenarios

Human Error

An employee of a private high school mistakenly distributed via e-mail the names, social security numbers, birthdates, and medical information of students and faculty, creating a privacy breach. Overall, 1,250 individuals’ information was compromised.

Theft of Digital Assets

A regional retailer contracted with a third party service provider. A burglar stole two laptops from the service provider containing the data of over 800,000 clients of the retailer. Under applicable notification laws, the retailer - not the service provider - was required to notify affected individuals. Total expenses incurred for notification and crisis management to customers was nearly $5M.

Privacy Breach

An employee of a rehabilitation center improperly disposed of 4,000 client records in violation of the center’s privacy policy. The center settled the claim with the state of Massachusetts and agreed to pay fines and penalties as well as extended $890,000 in customer redress funds for credit monitoring on behalf of the victims.

WHY PHLY?

  • 20+ years of operating experience in the Management and Professional Liability market with superior service and coverage
  • Superior financial strength from A.M. Best (A++ XV) and Standard & Poor’s (A+)
  • Dedicated team with over 100 underwriters & claims professionals located across 13 Regional Offices
  • A flexible policy offering both first and third party coverages for numerous classes of business
  • Ability to consider cyber risks with annual revenues in excess of $1B

TARGET CLASSES

  • Healthcare
  • Hospitality
  • Insurance Agency
  • Manufacturer
  • Non-Profit Organization
  • Private School
  • Professional Service
  • Religious Organization
  • Retail
  • Many more!

PROHIBITED CLASSES

CLAIM SCENARIOS

  • Adult Content
  • College/University
  • Data Warehousing/Data Broker
  • Casino/Gambling
  • Lottery
  • Mortgage Lender
  • Municipality

Unauthorized Access An international computer hacking group gained access electronically to the computerized cash registers of a restaurant chain and stole credit card information of 5,000 customers, starting a flood of fraudulent purchases around the world.

  • Public School District

Human Error An employee of a private high school mistakenly distributed via e-mail the names, social security numbers, birthdates, and medical information of First Party coverages

Third Party coverages Loss of Digital Assets

Network Security/Privacy Liability Loss resulting from damage to or corruption

Legal Liability for a security breach or privacy

students and faculty creating a privacy breach. Overall, 1,250 individuals’ personal information was compromised.

of the insured’s electronic data and computer

breach resulting from alleged violations of programs.

HIPAA and other privacy protection laws/

Non-Physical Business Interruption and

regulations (state, federal or foreign).

Theft of Digital Assets A regional retailer contracted with a third party service provider. A burglar stole two laptops Extra Expense

Employee Privacy Liability

from the service provider containing the data Income reimbursement during the period of

Legal liability for a security breach or privacy

of over 800,000 clients of the retailer. Under restoration of the insured’s computer system.

breach of employees’ PII or PHI.

applicable notification laws, the retailer - not

Security Event Costs

Electronic Media Liability Customer notification, regulatory fines and

Claims arising from the following on the penalties, and public relations expenses.

insured’s internet or intranet site

the service provider - was required to notify affected individuals. Total expenses incurred for notification and crisis management to customers was nearly $5M. Cyber Extortion Threat Reimbursement for extortion expenses resulting

Privacy Breach An employee of a rehabilitation center improperly disposed of 4,000 client records in violation of the center’s privacy policy. The center settled the claim with the state of Massachusetts and agreed to pay fines and penalties as well as extended $890,000 in customer redress funds for credit monitoring on behalf of the victims.

800.873.4552 | PHLY.com/MPLDivision

  • Defamation, libel or slander
  • Invasion of an individual’s right of privacy directly from a credible threat to the insured’s
  • Plagiarism or misappropriation of ideas computer system.

under an implied contract

Cyber Terrorism Reimbursement for income loss, interruption, and special expenses directly as a result of

  • Infringement of any copyright, trademark, title, service mark
  • Domain name infringement

an interruption or failure of the insured’s computer system caused by an act of terrorism.

ABOUT US

Company Profile

A.M. Best Rating Philadelphia Insurance Companies (PHLY) headquartered in Bala Cynwyd,

The Company’s two insurance subsidiaries are pooled for risk assumption PA, designs, markets, and underwrites commercial property/casualty

and accumulated surplus. A.M. Best Company has assigned the insurance and professional liability insurance products, incorporating value-added

subsidiaries an "A++" (Superior) rating. coverages and services for select industries. By maintaining a disciplined approach to business, we provide greater security for our policyholders and superior value for our shareholder. PHLY has field offices strategically located

Standard & Poor’s Assigned "A+" for counterpart credit and financial strength.

across the United States to provide superior service. Rated "A++" (Superior) by A.M. Best Company. Rated "A+" by Standard & Poor's. PHLY is a member of the Tokio Marine Group, Japan's oldest and leading property/casualty insurer.

Ward’s 50® Nationally recognized Property/Casualty as a member of Ward’s 50 Benchmark Group of insurance companies for outstanding achievement in the

PHLY has three underwriting divisions: Commercial Lines | Management & Professional Liability | Personal Lines

areas of financial strength, claims performance, and consistently favorable underwriting results.

CONTACT US: 800.873.4552 | PHLY.com

RISK MANAGEMENT SERVICES: 800.873.4552

PAYMENT OPTIONS: 877.438.7459

CLAIMS REPORTING: 800.765.9749 800.685.9238 Fax | E-mail: claimsreport@phly.com Gather facts, mitigate loss, inventory damage

E-mail: service@phly.com | Direct billed | Interest-free installments available | MasterCard, Visa, Discover, American Express, electronic checks

Philadelphia Insurance Companies is the marketing name for the insurance company subsidiaries of the Philadelphia Consolidated Holding Corp., a Member of the Tokio Marine Group. Your insurance policy, and not the information contained in this document, forms the contract between you and your insurance company. If there is a discrepancy or conflict between the information contained herein and your policy, your policy takes precedence. All coverages are not available in all states due to state insurance regulations. Certain coverage(s) may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. | © 2015 Philadelphia Consolidated Holding, All Rights Reserved.

MK- Ed. 060414

CYBER SECURITY LIABILITY KEY FEATURES

  • Limits available up to $20M for select risks
  • Both First and Third Party coverages available
  • Complimentary access to eRisk HubTM cyber risk management portal
  • Excess Cyber is available for clients requiring high limits
  • Availability of complementary coverages to provide broader risk management solutions including Directors & Officers, Employment Practices, Fiduciary, and Crime
  • Quick turnaround times for proposals and policy issuance
  • Learn More

SUBMISSION REQUIREMENTS

  • Completed application (< $10M annual revenues); application (> $10M annual revenues)
  • Latest annual financial statement
  • Supplemental claim form, if applicable

800.873.4552 | PHLY.com

RISK MANAGEMENT SERVICES Cyber Liability Risk Management Services – eRisk HubTM

  • As a Cyber Security Liability policyholder, you will receive complimentary access to the eRisk HubTM portal, powered by Net Diligence. eRisk HubTM provides tools and resources to help you understand the exposures, establish a response plan, and minimize the effects of a breach on your organization
  • Key features of the eRisk HubTM portal: - Incident Roadmap - includes suggested steps to take following a network or data breach incident, free consultation with a breach coach, and access to a breach response team - News Center - cyber risk stories, security and compliance blogs, security news, risk management events and helpful industry links - Learning Center - best-practices articles, white papers, and

webinars from leading technical and legal practitioners - Risk Manager Tools - assists you in managing your cyber risk including a self-assessment and state breach notification laws - eRisk Resources - a directory to quickly find external resources

with expertise in pre- and post-breach disciplines