1. Insurance in the Cloud
Ben Hunter, Canadian Underwriting Specialist Technology Insurance Specialty
Chubb Insurance Company of Canada

2. This document is advisory in nature.
DISCLAIMER
This document is advisory in nature.
The views, information and content expressed herein are those of the authors and does not necessarily represent the views of any of the insurers of The Chubb Group of Insurance Companies. Chubb did not participate in and takes no position on the nature, quality or accuracy of such content. The information provided should not be relied on as legal advice or a definitive statement of the law in any jurisdiction. For such advice, an applicant, insured, listener or reader should consult their own legal counsel

3. Agenda Difficulty Insuring Cloud Exposures
Insurance Coverage Available
E&O Insurance
Technology Risk Spectrum
Underwriting Considerations
‘I’ve been hacked!’
Q&A

4. Difficulty in Insuring The Cloud
How do you insure the data?
Data is not at rest in one location; schedule on property policy?
Data is in the care, custody or control of a third party
Business Income coverage typically excludes on line access providers
Carriers may provide sublimits for loss of utilities type contingent business income coverage
Errors and Omissions
Review definition of ‘your product’ and ‘your service’
Ensure cloud computing activities not excluded
Confirm no exclusion for loss of internet service

5. Insurance Coverage Property General Liability Errors and Omissions
Contingent Business income
Check exclusions. Must be a physical damage trigger
Usually sublimited. May purchase additional limits
Electronic Data
May need to schedule on an ‘any other location’ basis
Impairment of Computer Services
Business income and electronic data recovery costs due to an attack to the insured’s network
General Liability
Privacy
Has migrated to the E&O policy
Errors and Omissions
Originally covered financial loss due to a product defect or service deficiency
Now expanded into the world of intellectual property, privacy, and ‘cyber’ coverage

6. Technology Insurance Solutions
Errors & Omissions
Third Party
Product and Service Financial Injury
Privacy & Network Security
Intellectual Property (patent excluded)
Media
First Party
Privacy Remediation Expense
Insured’s reasonable and necessary expenses incurred after a data breach:
Public Relations
Notification
Forensics
Credit monitoring

7. Technology Risk Spectrum
CUSTOMERS
CONSUMER & REGULATORY RESPONSE
COMPETITORS & IP RIGHTS
Breach of Contact
Failure to Perform Services
Product Defects
Use of technology is ubiquitous, exposures are pervasive
Disclosure, Publication or Use PII/BCI
Privacy Remediation Expenses
Fines and Penalties
IP / Injunctive Relief
Media / Libel / Slander 7

8. What do Underwriters need to know?
Contracts
Operational exposures (human resources, network and physical security management)
Cloud Resiliency and Redundancy
Corporate governance in respect of IT and Privacy
Content, Transactions & e-commerce exposures
Risk Management and Loss Control attitude
Ability to recover from a loss
Claims History

9. ‘I’ve been hacked!’ Contact your Insurance Broker and/or Carrier
Contact Legal Counsel who specializes in data breaches
Engage third party experts to assist with investigation and remediation
Offer customers credit monitoring services
Engage a skilled public relation specialist
Contact Law enforcement, if applicable
Contact a Breach Coach

10. Breach Coach A Breach Coach can help you determine:
Is a computer forensics investigation needed?
Are breach notifications required?
What is the potential for regulatory fines or penalties?
What is the potential for legal action?
What are your next steps?

11. Thanks for your time