Coverage options for technology companies to address ripple
effects associated with a cyber-related event
PHILADELPHIA, Apr 16, 2012 (BUSINESS WIRE) --Travelers, a pioneer in cyber insurance coverage, today introduced an
enhanced version of CyberFirst(R),
its industry-leading product suite with eight new first party coverage
options designed for the needs of technology companies. The new Expense
Reimbursement module covers costs resulting from cyber attacks including
theft of assets, intellectual property or private information; as well
as telecommunications theft protection, a unique coverage option only
available through CyberFirst.
This new module complements an existing trio of third party cyber
liability coverage options including Technology Errors and Omissions
Liability, Network and Information Security Liability, and
Communications and Media Liability - all tailored specifically for
"Whether a customer is facing a potential liability, or trying to manage
business risks due to a data breach event, the broad protection offered
by CyberFirst fills in the gaps not covered by a traditional, general
liability policy," said Kathy Swendsen, President of Travelers Global
Technology. "CyberFirst creates a comprehensive, one-stop shop by
packaging all coverage components together in a single offering."
The Expense Reimbursement coverage options include:
Security breach notification and remediation expense
Crisis management service expenses
Business interruption and additional expenses
Cyber extortion expenses
Computer program and electronic data restoration expenses
Funds transfer fraud
The new enhancements provide even greater flexibility in building the
right coverage to fit each technology company's needs. The new first
party options complement Travelers' existing enterprise-wide and
worldwide liability coverage which provide up to $25 million in
According to a recent study, the cost of a data breach per record is $1941.
These costs can add up quickly. For example, a breach involving 10,000
records could cost nearly $2 million. "Selecting an insurance company
for cyber coverage can be a complex process. Identifying your real
exposures often goes far beyond the completion of a simple checklist,"
said Swendsen. "Travelers was a pioneer with CyberFirst. Our new and
enhanced form continues to lead the marketplace."
Travelers has provided coverage solutions to technology companies for
more than 25 years and understands the importance of assisting companies
and organizations through the full cycle of an incident, from coping
with a breach to expenses related to potential lawsuits. In addition to
this new product, Travelers offers cyber liability coverage tailored to
the needs of Public Sector customers, Bond and Financial Products
customers, among others.
CyberFirst will be available in all 50 states. More information on CyberFirst
is available on the Travelers website, www.travelers.com.
The Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto,
The company's diverse business lines offer its global customers a wide
range of coverage sold primarily through independent agents and brokers.
A component of the Dow Jones Industrial Average, Travelers has more than
30,000 employees and operations in the U.S., Canada, U.K. and
Ireland. The company generated revenues of approximately $25 billion in
2011. For more information, visit www.travelers.com.
1 Ponemon Institute(C) Research Report: "U.S. Cost
of a Data Breach Study, March 2012"
SOURCE: The Travelers Companies, Inc.