New Product Offers Fresh Coverage That Can Respond to Full Range of Cyber Exposures
TORONTO, Ontario: December 8, 2011 – Travelers Canada today unveiled CyberRisk, a new product from Travelers Financial and Professional Services dedicated to limiting client cyber exposures and managing associated risks.
“All types of businesses are exposed to cyber risks regardless of size, industry or track record,” said Jane O’Meara, AVP Management and Professional Liability for Travelers Canada. “Some businesses mistakenly believe that if they do not conduct their business online then they do not have any exposure to cyber risks. The reality is that over 35% of data breaches are caused by employee negligence1, from lost laptops to failure to erase hard drives off company computers prior to their disposal. Dealing with information leaks takes a lot of company time and money, so business owners need to be prepared to manage this risk to their business.”
As cyber risk becomes a larger threat to companies of all sizes, the associated costs and numbers of record breaches are staggering. A recent U.S. study found that the average cost of a data breach in 2011 was $5.9 million. 2 According to another study, there were 515 million records breached in the U.S. alone through 2010. 3 Several large scale data breaches have already occurred this year, causing this number to rise at a significant rate.
Travelers’ CyberRisk policy was designed to provide a comprehensive solution with both the flexibility and scalability to meet the needs of companies of all sizes across all industries.
CyberRisk will be offered as a standalone product to complement Travelers’ suite of management liability products. Insureds can build a custom CyberRisk policy that fits their business needs based on 10 coverage options. These options address exposures and the ripple effects associated with a cyber-related event including:
Third Party Liability coverage:
- Network and Information Security Liability
- Communications and Media Liability
- Regulatory Defence Expenses
First Party coverage:
- Crisis Event Management Expenses
- Security Breach Remediation and Notification Expenses
- Computer Program and Electronic Data Restoration Expenses
- Computer Fraud
- Funds Transfer Fraud
- E-Commerce Extortion
- Business Interruption and Additional Expenses
“If a company is using any kind of technology to run its business, it is at risk of experiencing a cyber event,” continued O’Meara, “With reported data breaches on the rise; managing cyber risk is fast becoming an important element to managing overall company risk. Travelers’ CyberRisk is an essential tool to help protect businesses of all sizes.” Travelers has provided cyber coverages for more than 25 years and understands the importance of assisting companies and organizations with the full cycle of an incident, from coping with the breach to expenses related to potential lawsuits. In addition to this new product, Travelers Canada offers cyber liability coverage in Canada tailored to the needs of the Technology sector.
About Travelers Canada
Travelers Canada is part of The Travelers Companies, Inc. (NYSE: TRV), a leading property casualty insurer selling primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $25 billion in 2010. In Canada, the company’s diverse business lines, under the name Travelers Canada, offers its customers a wide range of coverage through St. Paul Fire and Marine Insurance Company and Travelers Guarantee Company of Canada. For more information, visit www.travelerscanada.ca.