Insuring Innovation! CyberFirst® Coverage for Technology Companies TECHNOLOGY IS EVERYWHERE. SO ARE THE THREATS. Protection that goes well beyond a traditional general liability policy. CyberFirst CyberFirst is a powerful modular approach to writing coverage that is broad enough - and flexible enough — to meet the complex needs of today’s state-of-the-art technology companies. Threats are real, growing in both number and sophistication. There is an increased potential for errors & omissions, copyright or trademark infringement, and breaches of private information. Damages from these events can be devastating to your business’ bottom line or to the reputation you’ve worked so hard to build. With this newest generation of CyberFirst, we’ve expanded our already innovative specialty insurance coverage. The heart of its success is our flexible approach, and the addition of the Expense Reimbursement coverage module adds a new level of protection for our technology clients. To find out more about any of our CyberFirst coverages, contact your independent agent today! All Access Insurance Rick Cline – Agent (303) 932-1700 rcline@insuranceaai.com When it comes to technology innovation, the only thing holding you back should be your imagination, not your insurance. We understand the range of risks technology companies face today, and we’re ready for what tomorrow may bring. Your company has to be agile to stay ahead of the competition. Change can happen at hyper speed; CyberFirst’s flexible approach helps you build the right coverage to fit your needs while providing global, enterprise-wide protection for your business. Build the policy you need to round out your protection. CyberFirst offers these insurance modules for technology companies: Technology Errors & Omissions Liability Sometimes, despite your best efforts, a customer will tell you that your product or your work failed to meet their expectations. When this happens, even your best customer may choose to make a claim against you alleging lost profits or business disruption. If you fail to insure these exposures with an errors & omissions policy, you’ll pay the defense expenses and settlement costs out of your own pocket. Defense expenses alone can be catastrophic to your business. When you consider that well-written contracts are challenged in court every day and even high-quality products or services can fail to meet expectations, you need to protect yourself. CLAIM SCENARIO ONE: You design a radio unit that is integrated into a wireless telephone system. Contractors install a capacitor into your radio unit incorrectly as a result of an error in your schematics, causing failures to occur. Between 12,000 and 14,000 units are installed by the time the problem is discovered. Your client asserts a claim seeking to recover damages resulting from the failures. CLAIM SCENARIO TWO: You develop enterprise labor force software to integrate with a client’s HR and payroll systems. You fall behind in delivering the work, resulting in missed milestones and nonfunctioning project modules. You contend that the client repeatedly changed the size and scope of the project. Ultimately, the client fires you and files a lawsuit, seeking to recover lost profits due to the disruption. RESULT: CyberFirst Technology E&O Liability would be there to help because an errors and omissions wrongful act is defined as “any error, omission or negligent act.” Technology Errors & Omissions (E&O) Liability coverage protects against damages that you must pay because of economic loss resulting from your products or your work and caused by an error, omission or negligent act. Network & Information Security Liability Technology businesses today are driven by data. With that comes the profound responsibility to protect your customers’ private information, to prevent the inadvertent transmission of computer viruses and to ensure that authorized users are able to securely access your website or computer network. The theft or misuse of private or confidential customer information occurs daily. Even though a company may not have done anything wrong, it may face suits from its customers. What if that happened to you? Would you be prepared to face this on your own? If your only insurance coverage is a general liability policy, it’s likely you don’t have coverage for this type of loss. CLAIM SCENARIO ONE: Your employee’s company laptop is stolen from his home. The laptop contains private financial information of your customers. Your customers sue you for damages resulting from your failure to protect their private financial information. CLAIM SCENARIO TWO: Your employee inadvertently downloads a destructive computer virus that spreads to other files housed on your computer network. Your client downloads information from your website, allowing the virus to spread to the client’s computer system and resulting in widespread loss of data and a computer network shutdown. Your client sues you, contending you should have prevented transmission of the virus. The client seeks damages for the lost data and economic loss caused by the network shutdown. RESULT: In both cases, CyberFirst Network & Information Security Liability would be there to help because a network and information security wrongful act includes “failure to prevent unauthorized access to, or use of, electronic data containing private or confidential information of others” and “ failure to prevent the transmission of a computer virus” Network & Information Security Liability coverage protects against risks associated with the failure to protect electronic data containing others’ private information, the inadvertent transmission of a computer virus, the inability of authorized users to access your website or computer network, and failure to comply with any security breach notification law that applies to you. Communications & Media Liability In today’s world, copyright and trademark infringement can be just a mouse click away. With technology making it easier for creative material to be copied, plagiarized or misappropriated, it’s increasingly likely to occur. With businesses becoming ever more vigilant about protecting their property rights, your material could be the subject of infringement or plagiarism claims. Failing to insure these exposures through a Communications & Media Liability insurance policy means you would pay all defense and settlement costs out of your own pocket. Considering the average cost to defend a copyright or trademark infringement suit is more than $250,000, ask yourself this: would you be prepared to face this on your own? CLAIM SCENARIO ONE: You overhaul your website for the online launch of your new product. Your website now contains a new marketing logo for the new product. After seeing your new website, another company files a trademark infringement suit against you, contending your new logo is similar to its own trademarked material. The lawsuit seeks damages, as well as an injunction to stop you from using the trademark. CLAIM SCENARIO TWO: You place advertisements on your website and in your direct mailings to announce a new service offered by one of your important partners. The advertising contains material that your partner’s competitor claims it owns. The competitor sues you, contending you are liable for damages caused by unauthorized use of the advertising material. RESULT: In both scenarios, CyberFirst Communications & Media Liability would be there to help because a communications and media wrongful act includes “infringement of copyright, title, slogan, trademark, trade name, trade dress, service mark, or service name in your covered material” and “unauthorized use of any advertising material, or any slogan or title, of others in the advertising of the business, premises, products, services, work or completed work of others.” Communications & Media Liability coverage provides broad coverage to protect against claims or suits for damages resulting from unauthorized use of someone else’s copyrighted or trademarked intellectual property. It also covers unauthorized use of any advertising material or any slogan or title of others, and exposures resulting from plagiarism. Expense Reimbursement Coverage In today’s data-driven world where sensitive information is stored and transferred both on paper and electronically, organizations of all sizes are vulnerable to costly and damaging liabilities from data security breaches that are occurring at alarming — and growing — rates. Whether data is compromised by a hacker, virus, cyber thief, or because of lost or stolen computers, laptops, flash drives, smart phones or dumpster diving, the breaches can have serious ramifications. There are substantial financial costs involved in finding the cause of and remedying a breach, including the cost of notifying customers — now legally mandated by almost every state. The company can also suffer immense damage to its reputation and from the interruption to business. CyberFirst offers eight optional first-party insuring agreements designed to help you protect your business. Security Breach Notification and Remediation Expenses Coverage Coverage for costs incurred by you as a result of a security breach to: • determine the cause of the security breach and the persons whose identity information was accessed or acquired without their authorization; • develop materials to notify the persons, and notification to those individuals whose identity information was accessed or acquired; • provide credit monitoring for 365 days; and • provide a call center to handle inquiries. CLAIM SCENARIO: A skilled cyber criminal hacks into your company’s internal processing system. Names, addresses, and credit card information for over 50,000 of your members are captured out of the system. Expenses will likely include hiring a breach response firm to find the cause of and fix the breach, assisting with notice requirements and expenses, providing credit monitoring and a call center for impacted individuals, and obtaining an ID Fraud policy for affected victims. Crisis Management Service Expenses Coverage Coverage for costs associated with retaining public relations services to mitigate negative publicity generated from loss provided under any of your CyberFirst coverage forms. CLAIM SCENARIO: Your Chief Customer Service Officer has their laptop stolen. The laptop contains over 100,000 donor records, including their personal contact information. Expenses will likely include hiring a public relations firm to restore donor confidence or mitigate negative publicity generated from the incident. Coverage Advantages All Access Insurance is your go-to agency for protection against the emerging risks that technology companies face every day: Bottom Line Concerns? SOLUTION: CyberFirst Technology Errors and Omissions Liability Technology Errors & Omissions Liability coverage is enterprise-wide and specifically tailored for today’s high-tech companies. It protects the policyholder’s bottom line against damages they must pay because of economic loss that arises out of their products or their work and is caused by an error, omission or negligent act. Claims or suits for such damages — typically not covered under a CGL policy. Privacy Concerns? SOLUTION: CyberFirst Network & Information Security Liability Network & Information Security Liability coverage protects the policyholder against claims for loss caused by the failure to prevent unauthorized access to, or use of, data containing private information of others. The Network & Information Security Liability coverage also protects the policyholder against claims for loss cause by the failure to prevent the transmission of a computer virus and failure to provide access to authorized users of the policyholder’s website or communications network. Infringement Concerns? SOLUTION: CyberFirst Communications & Media Liability Communications & Media Liability coverage protects against infringement of copyright, title, slogan, trademark, trade dress, service mark or service name in the policyholder’s covered material. The form also covers unauthorized use of any advertising material, or any slogan or title, of others in the advertising of the business, premises, products, services, work or completed work of others. In addition, plagiarism or unauthorized use of a literary or artistic format, character or performance in the policyholder’s covered material is included. Expense Concerns? SOLUTION: CyberFirst Expense Reimbursement Coverage Expense Reimbursement Coverage provides important first-party protection for your business. Choose from the following coverages: Security Breach Notification and Remediation Expenses, Crisis Management Service Expenses, Business Interruption and Additional Expenses, Extortion Expenses, Computer Program and Electronic Data Restoration Expenses, Computer Fraud, Funds Transfer Fraud and Telecommunications Theft.