New policy designed to simplify cyber risk management

Berkshire Hathaway Specialty Insurance (BHSI) has launched a cyber insurance product in Canada that combines cyber liability and breach response coverage with risk management resources for commercial enterprises and financial institutions.

“Our new policy simplifies the complex endeavour of managing cyber exposures for both our business partners and our customers,” suggested Michael Densham, senior vice president of executive & professional lines with BHSI Canada. “We are excited to round out our executive and professional lines offerings with this flexible cyber solution.”

The Professional First Network Security & Privacy Liability Policy is geared towards large commercial enterprises and a range of financial institutions, including insurance companies, credit unions, banks and asset managers.

Policy highlights include:

• Coverage for both first and third party exposures resulting from data security and privacy breaches, including regulatory investigations, fines and penalties;
• Breach expense and extortion threat coverage, addressing the direct expenses an insured incurs to effectively respond to a breach or extortion threat;
• Media liability coverage, which responds to traditional media exposures (such as through a company’s website) arising from electronic content;
• Business interruption coverage to pay lost income and related expenses incurred as a result of the insured’s partial or full business interruption due to a network security failure; and
• Online access to eRiskHub tools and resources to help policyholders understand cyber exposures, establish a breach response plan and prepare to mitigate the impact of a breach on their organization (eRiskHub is provided via NetDiligence, a cybersecurity and e-risk assessment firm).

Policyholders of BHSI also have access to legal experts to help them manage their obligations following a breach; forensic IT services to identify and contain a breach; and public relations and credit monitoring firms to manage the reputational damage that can accompany an incident.