Explanation of Insuring Agreements

The Limit of Liability is the aggregate amount that will be paid by the carrier for defense and damages. This aggregate will include the following sublimits, which are part of this limit: Information Security & Privacy Liability, Regulatory Defense & Penalties, Website Media Content Liability, Public Relations, Payment Card Industry (PCI) Fines & Penalties.

Notification Limit is the amount of records that the carrier will provide for notification, call center services, and credit monitoring. This limit is separate from and in addition to the policy limit of liability aggregate. The Legal & Forensics costs are sublimits that are part of the Notification Limit. The Notification Limit does not have a deductible, however it does have a threshold. This threshold only pertains to the call center and credit monitoring services. If the breach affects over 100 records, these services are activated. If it does not, all notification will be provided except the call center and credit monitoring services.

Information Security & Privacy Liability is inuring agreement A and will pay on behalf of the insured damages and claims expenses for:

  • Failure to protect private information
  • Transmission of a virus from your system to another
  • Failure to notify individuals of a breach
  • Failure to comply with a Privacy Policy
Regulatory Defense & Penalties will pay on behalf of the insured claims expenses and penalties assessed by regulatory agencies.

PCI Fines & Penalties will indemnify the insured for PCI fines and costs.

Website Media Content will pay on behalf of the insured damages and claims expenses for allegations of copyright infringement and defamation arising from the insured’s website.

Cyber Extortion will indemnify the insured for loss paid as a result of an extortion threat to protect private information.

Legal & Forensics will provide the insured with a computer security expert to determine the extent and cause of a breach. It will then provide for an attorney to determine with which notification laws the insured will need to comply.

Public Relations will pay for a public relations consultant to help the insured introduce the breach to the public.

Fraud Resolution will provide services to the affected individuals in restoring their identity.