KYLE GREENUP, NGU RISK MANAGEMENT
A growing topic of concern for our Members is the topic of Cyber Security and the liability arising from data breaches and successful hacking attempts. In 2017, major news networks reported on hacks and data breaches in large companies such as Equifax, Verizon Wireless, Edmodo and many more. We’ve seen the rise of Ransomware, most notably the WannaCry outbreak, which will encrypt hard drives rendering the data unusable until a ransom is paid. We’ve seen more sophisticated spear phishing campaigns resulting in the loss of cash via wire transfer or other means. 2017 has been an eventful year in the cyber security world, and the consensus is that 2018 will be more of the same, if not worse.
In this world of increasing cyber security threats, we have some good news for you. TNRMT’s coverage document includes Cyber Liability Coverage. This coverage is specifically designed to protect your entity from and mitigate expenses arising from a cyber security related loss.
Recently, TNRMT has seen a handful claims fall under this Cyber Liability coverage. In one instance, a successful spear phishing email was sent to an individual that works for a TNRMT Member. The email, which appeared to be from a known and legitimate source, asked the individual to transfer money. In this case, the transfer was made and TNRMT paid a claim to the Member under Cyber Liability. In a second instance, a hacker gained entry into a Member’s network based HVAC system. Although in this instance there was no evidence of data breach, TNRMT was ready to utilize Cyber Liability Coverage for the Member.
The bottom line is this: As a Member of TNRMT, your entity has protections under the included Cyber Liability Coverage and there is no need to seek additional cyber liability insurance products. TNRMT not only offers protection, coverage, and guidance after a cyber event, but through our partnership with Great American and CyberScout we offer mitigation services and tools as well. If you are a TNRMT Member, any additional cyber liability insurance product is completely unnecessary and redundant. In addition, alternate cyber liability products are often expensive for the coverage offered and they are not tailored for public entities in Tennessee.
If you would like to take advantage of the Great American / CyberScout cyber mitigation services and tools, please read our last newsletter titled “The Evolution of TNRMT Cyber Coverage” by Tom Montgomery at the following link: http://www.tnrmt.com/resources/
NGU Risk Management