Topic Thread

1.  Cyber Risk insurance

Posted 9 days ago
Just curious if anyone has purchased a Cyber Risk policy?  Our insurance provider is quoting us on such a policy that includes "social engineering and telecommunications fraud".   A lot of the proposed policy seems to be directed toward "internal" fraud with directors and employees.

Thanks for any input,

------------------------------
Vickie Tischendorf, CPA, CFO
Martel Construction, Inc.
Bozeman, MT 59715
406-586-8585
------------------------------


2.  RE: Cyber Risk insurance

Posted 8 days ago

I bound a cyber crime policy on behalf of a client several years ago, when this topic was very new.  This is complicated stuff.  The real problem may be that most of us do not think maliciously enough to understand the risks.  After lots of education on the matter, I learned that the threats are very real for all businesses.  Previously, I was thinking only of big, flashy breaches like data theft from national retailers.  Perhaps the most valuable components of a cyber crime policy are:  a) the assistance you receive in identifying your cyber risks and best practices for mitigating these risks   b) the resources that will be immediately available to you on an emergency basis, should a cyber incident ever occur at your company.

 

 

 

 

T.J. Ferrantella

312-767-9070 Chicago, Illinois  | 269-464-5111 Riverside, Michigan

Helping A/E/C Leaders Guide Change for their Organizations, Systems, and People.

www.org360.org

 

 






3.  RE: Cyber Risk insurance

Posted 8 days ago
I just recently purchased and EDP GL policy from Travelers.

What I found in looking at out insurance program was that we had coverage under our property policy for for things like the direct physical loss of EDP equipment and data, our crime policy covered maters that involve computer fraud, our employment practices policy covered limited coverage for breach of privacy and our D&O policy covered limited network security breaches.

What was missing was coverage for a loss to a third party which is what the policy from Travelers covers.

One of the questions that I always asked was "what does a GC have that a hacker would want?" Other than the obvious...lots of cash via checks and wires. We see our fair share of phishing attempts. We have very strong controls over wires so I'm not too worried about this one. We don't have retail transactions so we don't house hundreds of thousands of credit card numbers or social security numbers. We do have the SSNs of our employees but hardly enough to warrant a large scale hack and they are also well protected, but that's about it.

Apparently the new hack is to get into a GC's network and get copies of plans and specs. The hacker then sells these on the dark web where someone purchases these and adds a back door to things like building security systems, HVAC systems and/or other computerized building systems. Then it sits out there until there is a ransom attack where they hold the building system(s) hostage.

This kind of third party loss is exactly what my EDP GL policy is for and would not have been covered under our existing insurance program.

------------------------------
Michael Grant CPA
Chief Financial Officer
Cahill Contractors
San Francisco CA
(415) 956-9948
------------------------------



4.  RE: Cyber Risk insurance

Posted 7 days ago

What a GC has that a cyber-criminal wants is money!  If they get into your computers and hold them ransom, they don't care what data they have held hostage.  All they care about is that it is important to you and you will pay to get it back.  Cyber insurance is just like any other insurance.  When you need it, you are glad you have it. 

 

 



Margo Ferguson, CPA

Controller

GH Phipps Construction Companies

5995 Greenwood Plaza Blvd, Suite 100,

Greenwood Village CO 80111

 

p | 303.389-3706   m | 720-340-6801
margo.ferguson@ghphipps.com

 

Inspire Lead Deliver 

 

 

 






5.  RE: Cyber Risk insurance

Posted 8 days ago
Hi Vickie - I went to a CFMA event in NYC this week that was targeted on Cyber Security.

One of the panel members should be able to assist you with this - I believe he is a broker himself;

John Ercolani - President - NJ - jercolani@apspeciality.com

http://apspecialty.com/contact-us/

He seemed highly knowledgeable on all this subject matter, there was also a guy from Traveler's on the panel but I don't have his details apologies.

Hope that helps.

------------------------------
Leon McAllister
Manager
Hays
New York City NY
(212) 548-4505
------------------------------



6.  RE: Cyber Risk insurance

Posted 7 days ago
Thanks to everyone for your feedback.  Always helps to learn others experiences and insight.

------------------------------
Vickie Tischendorf, CPA, CFO
Martel Construction, Inc.
Bozeman, MT 59715
406-586-8585
------------------------------



7.  RE: Cyber Risk insurance

Posted 6 days ago
We purchased a policy this year with our insurance renewal. It was fairly inexpensive and I feel like it is really great coverage. It covers all sorts of things I would not have thought of.

------------------------------
Bobby Redinger CPA, CCIFP
CFO
Timberlake Construction
Oklahoma City OK
(405) 840-5469
------------------------------



8.  RE: Cyber Risk insurance

Posted 3 days ago
Yes. I purchased it several years ago. With 300-400 employees, I am concerned mostly with identity theft of payroll information if we have an unforeseen data breach. It's cheap coverage and covers defense costs.

------------------------------
Doug Hutchison
Chairman & CEO
Meisner Electric, Inc.
Delray Beach FL

------------------------------



9.  RE: Cyber Risk insurance

Posted 2 days ago
There are several carriers that provide cyber coverage.  Most have a website portal that provide a wealth of resources to help in your risk control effort.  However, some carriers actually provide pre-breach assessment and loss control services.  It is also important to understand the support that will be provided in the event of a data breach, or other cyber loss.  This is an important coverage, especially the social engineering fraud coverage you mentioned.

------------------------------
Bret Burton CPCU
Surety Manager
IMA, Inc.
Wichita KS
------------------------------