Incompas (Fall 2016) Show Daily

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« 1 4 » THE INCOMPAS SHOW I OCTOBER 23-25, 2016
THE INCOMPAS SHOW
UNITEL Offers Cyber Liability Program
UNITEL Insurance has partnered with
INCOMPAS to offer Cyber Liability/Tech-
nology Error’s and Omission’s coverage
for INCOMPAS members.
A division of UNICO group, UNITEL is dedi-
cated to providing risk solutions for the telecom-
munications industry. Teaming up with UNITEL
connects you with insurance experts privy to
state and national advances.
Evolving technologies and trends offer a
unique set of challenges and opportunities –
insurance options being one of them. UNITEL
identifies strategies, so companies can better
protect every aspect of your business
“With the growing risk of cyberattacks and
data breaches, companies must be prepared
to protect themselves and their customers,”
said Chip Pickering, CEO of INCOMPAS.
“Solutions from companies like UNITEL can
help communications providers be proactive in
protecting themselves, employ best practices
and mitigate their risk.”
One great resource that INCOMPAS
members can access through this program is the
eRisk Hub. This is a go-to resource for all things
cyber, helping you shore up your defenses and
respond effectively to data breaches, network
attacks and other cyber events.
There’s no such thing as perfect security.
Whether a hacker, computer glitch or staff
mistake, most organizations will experience a
data breach incident. eRisk Hub can help lessen
the risk with key features, such as:
• Incident Response Plan Roadmap –
Suggests steps to take following a network
or data breach.
• Online Training Modules – Ready-to-use
training for business owners on privacy best
practices and red flag rules.
• Risk Management Tools – Assists you in
managing your cyber risk and includes a
self-assessment and state breach notifica-
tion laws.
• News Center – Cyber risk stories, secu-
rity and compliance blogs, security news,
risk management events and helpful
industry links.
• Learning Center – Best-practice articles,
white papers and webinars from leading
technical and legal practitioners.
• eRisk Resources – A directory to quickly
find external resources with pre- and post-
breach expertise.
Every business has unique risks that seri-
ously can harm its operations if not properly
protected. As a business utilizing technology to
produce and deliver products and/or services,
it’s important to recognize and take precautions
against risks that commercial general liability
coverage doesn’t include.
Technology professional liability coverage,
also referred to cyber liability coverage, is essen-
tial for companies using technology, because
it addresses a lack of protection in commercial
general liability policies, which typically don’t
cover claims of third-party financial harm.
Cyber threats are real, growing in number
and sophistication. There is an increased
potential for errors and omissions, copyright or
trademark infringement as well as breaches of
private information.
Technology businesses are driven by data.
With that comes a profound responsibility to
protect customers’ private information, to prevent
the inadvertent transmission of computer viruses
and to ensure that authorized users are able
to access your website or computer network
securely. The theft or misuse of private or confi-
dential customer information occurs daily.
What does Tech E&O
(Cyber Liability) cover?
Tech E&O manages risks, resulting from
providing a product or service to a third party,
that are not covered by a commercial general
liability policy.
Specifically, tech E&O protects your busi-
ness in the event that a third party suffers a
financial loss due to your product or service
not performing as it was intended or expected,
including the event of an error or omission
committed by your company.
These policies also cover defense costs in
the event of litigation.
Tech E&O coverage would apply in the
following situations:
• An error in the code of a website or program
your company produced isn’t found before
it is implemented. A third party depends on
this product or service to operate its busi-
ness, which is stalled due to the error and
cause them a financial loss.
• A part your company produces is installed
in a piece of equipment. After a short
amount of time, the component simply stops
working, causing the equipment to fail, but
otherwise not damaging anything or hurting
anyone. The third party that relies on this
equipment for its business has to stop oper-
ations and suffers a financial loss.
• An employee of your company recommends
that a client make an adjustment to its
network. The client follows the advice and
its network crashes as a result, causing a
time and financial loss for its operations.
In all of these cases, commercial general
liability coverage would not cover a claim or any
costs of litigation because of the presence of an
error and the lack of resulting physical damage
to the third-party’s property.
It should be noted that tech E&O policies
usually exclude product recall, but some will
accept damages for loss of use of a failed
product. They also generally exclude non-finan-
cial losses and intentional or dishonest acts.
A lot can be done to reduce or eliminate
exposures through better understanding of the
coverages you have and do not have. Not all
exposures require an insurance policy to control
or avoid a loss.
Contracts also can have a dramatic impact
on your exposure to liability as a result of the
acceptance or transfer of risk. However, some
exposures are best solved by a technology
errors and omissions policy (cyber liability).
Often we think of war being fought with
bombs and bullets, but there is a silent attack
called cyber attack using only a computer. With
the increase in electronic productivity our lives
are more exposed than ever to an attack that
can grind our business to a stop.
The number of cyber threats we face daily are
becoming staggering. Remember planning for
cyber attacks should be considered when putting
together an emergency plan.
It is essential to conduct a risk analysis to
identify exposures you may have and to what
extent they exist. Purchasing a cyber liability
policy may not meet your needs at all. In fact,
without a thorough analysis of risk and coverage
you may end up buying a cyber liability policy
that only partially meets your needs.
UNITEL can offer special pricing, coverage and
risk management tools to INCOMPAS members. p
To learn more, go to or
call Carl Zeutzius at 402.770.7150 or email
We’d be happy to meet
with you while at The INCOMPAS Show.