Technology Meetup Recap: Cyber Insurance

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On Thursday, July 9, the American Booksellers Association presented a Technology Meetup on cyber insurance. Learn more about ABA meetups here.

The team from Arrowhead General Insurance Agency presented information on cyber coverage and how this coverage can protect bookstores, especially as threats have increased during the global COVID-19 pandemic. Guest speakers included Bookstore Insurance Specialist Judi Yacovazzi, Vice President and Bookstore Insurance Leader Tiffany Poletti, and Chief Underwriting Officer Chris McQuiklin.

Here are some of the key points from the session: 

Cyber Threats

  • One type of cyber threat is phishing, which is done through emails that request personal information. These emails might appear as if they’re from help desks or customers, for example. It’s important to vet email addresses to make sure you know the source. 
  • Malware is a type of threat where software gets downloaded to a computer. This can be done through email.
  • Denial of service is where a hacker logs into a server and denies access for the rest of the company. 
  • Extortion is an attack that can be coupled with a demand of money or response.
  • Another kind of attack is called man in the middle, which involves the hacking of a session within a computer. The hacker poses as a business trying to do business with you. 
  • A data breach is broader and not always done by a hacker. It occurs when someone intentionally or unintentionally shares data that should not have been shared.

Cyber Insurance 101

  • Cyber insurance is designed to guard businesses from the potential effect of cyberattacks and mitigate risk exposure.
  • Data compromise is designed to guard businesses from loss, theft, accidental release, or accidental publication of “personally identifying information.”
  • Cyber and data compromise insurance can be added to your current policy via endorsement. 
  • Costs are between $100 and $1,000 for most coverages and limits can vary. 

Cyber Coverage

  • System and data restoration: Covers the cost one incurs to have a professional firm hired to replace any electronic data that was lost or corrupted as a result of a cyberattack.
  • Data re-creation: Covers the cost of a professional firm hired by the insured to research, recreate, and replace lost or corrupted data from a non-electronic source.
  • Business income lost: Covers insured and extra expenses incurred by the insured during the period of time when system and data recovery activities are taking place. 
  • Public relations: Covers costs related to maintaining valued relationships with customers.
  • Network security liability: Covers lawsuits arising from the attack. 

Data Compromise Coverage

  • This covers a forensic review; legal fees; notification and services to those affected by the breach; public relations; and costs of defense and liability.

Booksellers with questions can email bookstoreinsurancexpert@arrowheadgyp.com or call Yacovazzi at (513) 314-4513. 

A full recording of this session, which includes examples of each type of cyber threat, will be posted on the Education Resources page on BookWeb.org in the coming week.

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