Vital Cyber Business Interruption Insurance

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"WELCOME to COVER AGENCY, Ltd.

"Wholesale Multi-State

Insurance Brokers & Surplus Lines Brokers "

We place insurance coverages with many highly rated insurance companies both within the USA and the World,

 on behalf of our Brokers and their Clients.

WHOLESALE CYBER INSURANCE

Introduction To COVER'S:

"CYBER PRIME THREE TIER INSURANCE COVERAGE" PROGRAM

 

"Cyber Prime 3 Tier Insurance is available through Cover Agency's Wholesale Insurance Facilities, entitled as Cover's "Cyber Prime Insurance Program Policy With Endorsements". All applications are subject to insurance company Underwriting Approval and Policy Issuance by an "A++" balance sheet, Quality Insurance Company (Part of the biggest publicly owned insurance company group in the world.)

Cover Agency Ltd is Focused upon Providing CYBER INSURANCE PROTECTION for ALL THREE ESSENTIAL CLASSES OF CYBER RISK PERILS..  Cyber Insurance is essential to protect not just against the loss of important information (data), but also to PROTECT THE INSURED CLIENT FROM FINANCIAL LOSSES due to 3 CLASSES OF LOSSES:

1. BUSINESS INTERRUPTION (That if not insured against may otherwise drive a company out of business) 2. THEFT OF MONEY IN BANK ACCOUNTS, SECURITIES, UNIQUE SOFTWARE PROGRAMS, OTHER EXISTING ASSETS AGAINST THEFT. FINANCIAL LOSSES AND PERFORMANCE OF SERVICES REQUIRED BY LAW that are Necessary to Keep the Insured Company in Business from an Operations Viewpoint:

A. "FIRST PARTY INSURANCE": DIRECT iNSURANCE PROTECTION PROVIDING DIRECT COMPENSATION TO THE INSURED, FOR FINANCIAL INJURY RESULTING FROM COVERED CYBER PERILS.

 First Party Insurance Coverages Generally Include:

·         Digital Data Recovery Expenses, Including Costs to Restore or Replace Damaged and Lost Data, Also Damaged or Lost Software;

·         Business Interruption Coverage, including Loss of Profits, and Expenses Resulting from Interruptions of Insured's Systems; Contingent Business Interruption Coverage provides additional protection against Insured's Losses resulting from Interruption of Other Systems; Note that Enhanced Business Interruption may be available too.

·         Network Extortion Insurance Coverage provides for Extortion Payments to Prevent Digital Destruction or Impairment to the Insured's Network;

·         Cyber Incident Response Fund, to Reimburse the Insured for Notification Expenses, Credit Monitoring, Legal Fees, Forensics, Public Relations Expenses, etc.

·         Telephone Toll Fraud: Costs Resulting from Phone Bill Charges, such as Fraudulent Calling.

B. THIRD PARTY LIABILITY INSURANCE PROTECTION PROVIDES; PROTECTION TO THE INSURED AGAINST LIABILITY TO THIRD PARTY CLAIMANTS FOR COMPENSATORY DAMAGES RESULTING FROM LIABILITY JUDGMENTS AGAINST THE INSURED FOR COVERED INSURANCE PERILS.

Third Party Protection Includes:

·         Cyber, Privacy and Network Security Liability, including Failure to Protect Private or Confidential Information of Others, and Failure to prevent a Cyber Incident from impacting others’ systems;

·         Note: Broadened definition of Protected Information includes biometrics, internet browsing history and personally identifiable photos and videos;

·         Regulatory Proceedings Expenses: Both Defense Expenses for Regulatory Actions, and Financial Coverage for Fines and Penalties (Which may be quite extensive);

·          Media Liability: Copyright Violations and Trademark infringement within the scope of defined media content (May be quite expensive);

·         Payment Card Loss:  Cyber Incident caused Contractual Liabilities owed;

C. CYBER CRIME INSURANCE COVERAGES PROVIDING DIRECTLY TO INSURED FINANCIAL INDEMNIFICATION AGAINST CYBER CRIME CLASS PERILS. Cyber Crime Insurance is a policy endorsement. (Cyber Crime insurance coverage is a voluntary coverage, requested by the applicant).

·         Computer Fraud: Third party accessing insured’s computers to wrongfully take money

·         Funds Transfer Fraud: Third party wrongfully tricking a bank into transferring funds from insured’s account(s)

·         Social Engineering Fraud: Third party tricking an employee into wrongfully transferring money

Important Notes for retail brokers and insurance clients: (i) Coverage Territory applicable to anywhere in the world, or even the universe, to address continued evolution of hosting and data storage facilities. (ii) The information contained herein are general cyber insurance product summaries only. Insurance Coverage is subject to the language of the policies as actually issued. Please read your insurance policies to verify the coverage content. (iii) Cover Agency is focused upon providing on a wholesale basis industry leading insurance coverage that will comply with regulatory and other legal cyber security standards, as the industry evolves. However, we do not provide legal advice, nor legal interpretation of insurance policy language. It is the insured's responsibility to read their insurance policy and to obtain legal explanations of policy language from their own counsel.

Additional Information - See Links on Cyber Page For Detailed Information or

Contact me at address, phone number or email above.

SIMPLE EXAMPLES OF BUSINESSES THAT NEED

CYBER FIRST PARTY INDIRECT (CONTINGENT) BUSINESS INTERRUPTION INSURANCE

1. A shared healthcare medical system database and program, used by doctors and medical facilities, (ie cloud database), is damaged or destroyed; it contains the medical history information for every patient that most doctors in a community need to diagnose and treat patients in their office or at the hospital. The information in the data bank is missing, due to a failure caused by an attack (or some sort of unintentional electrical system failure). The back-up system is damaged too, from the electrical system failure or other still undiagnosed problem ; loss of use is for at least three weeks. Meanwhile each doctor has employee payrolls (other doctors on staff, nurses, technicians , equipment leases, rent, electricity, etc,) and lost medical fee revenue; reason doctors will not have medical records available, which might result in incorrect diagnosis or treatment, and therefore cannot see most patients and provide proper care. However, but bills must still be paid to stay in business. Of course all profits for the period are also lost. Expenses and lost profits would be reimbursed if the doctors or medical facilities had purchased Cyber First Party Indirect Contingent Business Interruption Insurance, from a company that provides that coverage. Note that we provide this coverage from one of the most prestigious and respected insurance companies in the world, with a substantial commission rate.

2. An online mortgage lender's mortgage application legal disclosures system, using data accessed from a remote system, that is required by federal law for a mortgage lender to use to disclose financial information to a mortgage loan applicant at inception, or to store information, process and underwrite mortgage applications, fails in California interfering with the mortgage lender's ability to do business in New York City and 40 additional cities. All loan approvals and closings are frozen for a month. Legal computations of federal and state required disclosures are shut down, and company must close its doors until systems are up and running again. Payroll consists of 100 highly skilled lender employees to be paid weekly; lender can't afford to lay them off because the company can't replace them in a reasonable period of time (Therefore company must continue to carry the payroll while closed, with no revenue being received). Additional accumulated expenses are very substantial: plus lost profits, of course. Only coverage would be First Party Cyber Indirect Business Interruption Insurance to pay the the lender's expenses and reimburse lost profits for the month.

3. An attorney's cloud database which contains his legal documents prepared on behalf of his clients, (ie "legal papers are work products"); he handled the clients lawsuits and contract work, including patents and business transaction agreements; all suddenly unavailable because the cloud storage system has failed and remote data access has failed, at its source for 3 to 4 weeks, despite the claim of a "back-up system". What happened he hasn't a clue. His law practice can't afford to carry its legal and paralegal employee payroll without borrowing, plus all other expenses, and concerns about not having sufficient Professional Liability Insurance since it could make a mistake without access to their database, and the expensive legal staff it employs. Go ahead sell them both policies. Now that would be a good days work! You definitely should suggest to him he purchase enough Indirect Business Interruption Insurance to cover his possible lost profit too. You would be doing him a mutually advantageous favor, if a claim occurs.

4. A real estate investment company's ongoing information about its ten owned multifamily investment properties, the rents current and past history and collections status, and additional accounting information about its tenants and its overall operations has disappeared off the outside company's third party owned cloud server for a month. Company is connected into a software and data provider that is working on the problem for 3 weeks. Imagine the lost revenue that can't be tracked plus daily expenses for payroll, etc. and lost profits of course. Boy is this insured glad he purchased Cyber First Party Indirect Business Interruption Insurance from you. Think you might have a chance at writing all his Lessor Risk business too? We have a really strong package for their ten apartment buildings. Probably you now have a real possibility of shortly writing those ten buildings Lessor Risk Coverage too. 

5. A supermarket chain's wholesaler source of fresh food has shut down their sales and shipping departments, due to "temporary cyber software failures" eliminating the internet access it needs to properly manage and control the retail stores, at their places of business; the supermarket chain was dependent upon accessing its daily cloud inventory status of existing products for sale and schedules for new deliveries, and its cash flow forecasting tools which are with an online accounting software service; its stored inventories are updated daily, and are contained in the outside provider's software; impossible to access the chain's order database of anticipated deliveries dates previously ordered, including orders for hundreds of food products; lack of anticipated delivery dates which the chain was dependent upon was contained in the wholesaler's cloud information system. The wholesaler's tracking system was connected into supermarkets accounts payables in the accounting department so the company can forecast its cash flow and ability to pay bills, earn profits, etc. 

Supermarket chain's 35 stores must cease selling fresh produce, meats, poultry, seafood, until a new source with adequate technology is located and contracted with. Canned goods they are counting every day with additional employees payroll expenses. Indirect Business Interruption Insurance would have been a real help, but no broker solicited them for it. Some broker missed a really good sale! 

Can you now figure out what items can be added together in assisting claims preparations? If you can, the top management will now have two reasons to turn over the entire account! 35 stores, vacation in Rio or Paris?

In the supermarket example, effectively this loss of supplier's services via the internet impairs the ability of the insured to operate its business and can quickly use up the insured working capital since his employees must be paid, almost all other standard operating expenses must be paid, and its anticipated profits are lost. The insured is simultaneously being squeezed from two directions. It's a real practical example of a substantial middle market business problem that can occur. It may even drive the chain out of business, as its working capital would quickly dissapate, if it hadn't purchased the Cyber First Party Indirect Business Interruption Insurance you sold them.