Cyber Liability Coverage

Data Breaches have become commonplace. A significant cyber-attack seems to grab headlines nearly every week. Cyber criminals are capable of defeating even the most sophisticated protection systems. Your best defense against network security breaches and related privacy issues is insuring your company against them.

Example – your employee inadvertently downloads a destructive virus that spreads throughout your computer network – your client, accessing your website has his network infected causing his network to shut down. The client sues you for not preventing the transmission of this virus and his subsequent economic losses due to his “shutdown”.

Cyber Liability Application

This comprehensive application provides an overview of the risks and liabilities with respect to Title Agent Cyber Liability Insurance. Additional questions or details may be requested upon review.

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    Does Your Title Company Really Need Cyber Coverage?

    When faced with the prospect of paying more for their own insurance, many title agents find a reason to not purchase Cyber coverage insurance. Is this a wise choice? Here are a few of the scenarios when paying more for insurance would save thousands of dollars of expenses and also minimize the distraction to your team. Time spent dealing with an unexpected Cyber claim is time not spent developing the business. An email address in your company is hacked, and criminals scroll through that inbox, collecting information while covering their footsteps. Most states would require you to then notify everyone whose personal information was in that inbox, from clients, to vendors, to partners. Cyber insurance could pay for those notification costs and a PR consultant to help your business mange negative press about the incident. A malware, accidentally downloaded by an employee, locks all computers on your network and threatens to delete all your information and files. If your information is not backed-up in real-time, you might need to pay the ransom in order to preserve the continuity of your business. This could especially be true if you have several large transactions that need to be processed immediately. An employee mistakenly calls the number listed on an email to verify wire instructions for a mortgage payoff, instead of the number on file. The employee confirms the wire instructions with a criminal impersonator and wires $100,000 to the wrong account. Because the mortgage still needs to paid-off for the transaction to […]

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    Insurance for Fraudulent Wire Instructions

    Fraudulent or faulty wire instructions from cyber criminals are affecting title professionals and closing agents across the United States. Here are two scenarios to consider: A title agent receives revised closing instructions from the seller/seller’s representative. The title company verifies the new closing instructions/wire routing numbers and wires the funds. A few days later, upon the buyer calling to ask where the money is for closing, it is discovered that the new wire instructions were fraudulent and the wired money is gone. The buyer of a house receives an email from a representative at their title/closing agency, giving them wiring instructions for their down payment. They wire the money per the instructions. When they eventually meet with the title agency, they find their money never arrived. The email they received containing wire instructions was fraudulent and the money is gone. The title company’s email had been hacked by cyber criminals. Insurance is available to protect the title agency/closing agent, but getting it is not as simple as adding a “wire fraud” endorsement to your policy. Here is what you need to do: Have a written, company-wide practice of verifying all wire instructions and revisions by phone. This includes reading the account number of the new wire and receiving verbal verification. This verification process is a warranty for most wire fraud policies, meaning that if you don’t do it, there will be no coverage. Purchase both Fidelity/Crime coverage and Cyber insurance coverage, and have a Wire Fraud endorsement coverage added to [...]

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    Directors and Officers Liability Insurance

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    Don’t get caught in a phishing scheme!

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    Cyber Liability Insurance

    After exhaustively discussing every aspect of their E&O coverage, most clients are not overly eager to hear about the “other” coverage recommended, in addition to E&O. The mindset seems to be that if a coverage is not required, then it is not a coverage a client should carry. Perhaps it is the additional expense or the time it takes to learn about something new. Perhaps the client still believes “that won’t happen to me”. Regardless, there may always be an
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