Transcript Slide 1

Crawford & Company
CYBER & Product Liability &
Professional Indemnity
‘Everything you always wanted to
know about claims ‘
Mark Vos, Head of GTS CEMEA
June 2013
Version 18 June 2013
Now back to the basics + discussion of a case.
What is your Cyber Risk
• Many definitions
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How structured is your organisation ?
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What is Cyber Liability
• Many definitions
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CYBER Risk definition
• Criminal
• Yearly
• Benefit
2011: Norton 
• Emerging
• Recurring
• Risk
2013 USA
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It is another Risk,
which comes back in every kind of policy like
Property, Casualty, Construction , Marine &
Transportation; without national limitations.
Loss
of
Control and Integrity
of
* Hardware, * Software,
* Data
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Product Liability
Professional Indemnity
Defining the product
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Procurement
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What is Cyber proof?
• A Dynamic Risk
• Encryption & log–in strategy
Over-selling & Under-delivery
Misperception of expectation
Contract
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What does the client say, he wants
What does the final user actually needs
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Technical / Functionality specification
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Validation
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Warranty & Limited Liability
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Fit for purpose < -- > Critical in the Business Continuity
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Who worries about our safety
• Chief Information Officer
– Who worries about the information storage and retrieval
– Days of the Business Process management data mining
• Chief Technology Officer
– Who worries about interconnectivity of systems
• Chief Digital Officer
– Who worries about total usage and management of data
– Big data en IP6
• Data Protection Officer
– EU regulation 2104 applied per 2016:
• Data Protection Directive 95/46/EC
• Company > 250 staff
• Notify breaches to Authorities
• < 24 hrs
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Anti Virus software
• Fire wall
– N-1
• Anti Virus software
– N
– N-1?
– Response on N-1
• System patches
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The Contamination
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The Contamination
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Liability starts at First Party
running on Products (Product L + PI)
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Material damage ?  BI / drop of Share price
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Down time and Business Interruption / Loss of Goodwill
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Internal protocols
Back up
USB clause
Virus software clause
Hardware or Data not necessarily at risk location
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Regulation impact
First Party Policy Requirements
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Virus or hacker
Computer Centre
Cloud (Public, Private, Hybrid) & EU Data Protection Directive 95/46/EC
Spread throughout organisation
Revalidation of software
Master policy coverage versus local policy
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Will your Company be hacked?
• Cyber crime is larger than Narcotics.
– Identity theft: USA 2007 $56 Billion  2011 $ 37 Billion / 8 Million people
– You do not die in the Internet
• Drivers
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Money transfer/ credit card data
Knowledge / espionage
Competition benefits
Nuisance / power / authority / war
• Risk factors
– External
• Crime
• Nuisance
– Internal
• Content leakage
• Espionage
• Rotation of staff
• Fraud
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10 Steps to Cyber Security
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10 Steps to Cyber Security
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1. Secure Configuration
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5. Managing User Privileges
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2. Network Security
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6. User Education Awareness
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3. Malware Protection
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7. Home & Mobile Working
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4. Removable Media Controls
Contractors
&
Consultants
The World
8. Information Risk Management Regime
9. Monitoring
10. Incident Management
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Incident Management
• Can you shut down? Generally No, unless you are shut down
• Pre-select the appropriate companies, which can review your systems,
and provide direct 24/7 support.
• Bring systems back in control.
• Make an inventory of level of First Party damage, and analyse virus in
back-ups.
• Make an inventory of level of Third party damage, and analyse
commercial and legal exposure.
• Report to insurers & Report to Press.
• Involve loss adjusters, who understand your problem.
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Cyber Risk team
• Dr Mark Hawksworth, UK
• Mark Vos, CEMEA, Rotterdam
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Crawford & Company
Many countries
Many languages
Many specialists
Many services
ONE point of contact:
www.crawfordandcompany.com
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