As data breach incidents and related cyber risks continue to increase more and more, companies have decided to offset this risk through the coverage of a cyber risk insurance policy. NANRS offer their insured different policy combinations of traditional liability coverage, protecting against claims by third parties, and first-party coverage protecting against losses suffered by the insured.
While no company can reasonably expect to secure every available component of coverage, awareness of differences among the offered policies is critical. Some clauses, terms and conditions of cyber policies can have a significant impact on coverage.
Some of these important features are:
This policy provides coverage to individuals and businesses for potential losses due to acts of terrorism. Prior to 9/11, standard commercial insurance policies included terrorism coverage as part of the package, effectively free of charge. Today, terrorism coverage is generally offered separately at a price that more adequately reflects the current risk.
Insurance losses attributable to terrorist acts under these commercial policies are insured by private insurers and reinsured or "backstopped" by the federal government pursuant to the Terrorism Risk and Insurance Act of 2002 (TRIA). Under TRIA, owners of commercial property, such as office buildings, factories, shopping malls and apartment buildings, must be offered the opportunity to purchase terrorism coverage. On January 7, 2015, TRIA was extended through 2020 and on January 15, 2015, the extension was signed into law. For the terrorism coverage to be triggered under TRIA for commercial policies, a terrorist act must be declared a "certified act" by the Secretary of the Treasury.