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May 23, 2016

NAS Introduces Enhanced Cyber Liability Product for SMB Sector

NAS Insurance Services, a national leader in cyber liability insurance and cyber breach incident response, today announces broad enhancements to its NetGuard® Plus cyber liability product.  The new features provide greater protection for emerging privacy and security threats for businesses of all sizes across a wide range of industries. The enhancements include:

  1. Unknown prior acts for covered cyber incidents that took place at any time prior to the inception date of the policy
  2. Business interruption expenses incurred as a result of outages caused by an insured’s cloud provider or web host. 
  3. Cyber-crime coverage for incidents such as fraudulent wire transfer requests is now included on every quote
  4. Payment Card Industry (PCI) fines, penalties and assessments are covered up to the policy limit
  5. BrandGuard® coverage for reputational harm  is included up to the policy limit on most quotes

In addition to the enhancements to the cyber liability insurance coverage, NAS has reduced its rates and increased its maximum limits to $25 million.

 “As the number of cyber incidents increase in all business sectors, they are also becoming increasingly complex,” remarked Michael Palotay, National Cyber Liability Practice Leader for NAS. “Our policyholders are interested in broader coverage and with enhancements like BrandGuard, they feel more confident in their ability to get through the challenging times following a breach.”

In its recently released 2016 Incident Security Threat Report, Symantec reported that over 400 million individual identities were exposed in 2015.  Incidents of malicious software viruses and ‘ransomware’ in particular have increased 35%, and email scams (aka, “spear phishing attacks”) targeting employees have increased 55%.  The Symantec report also identified that 43% of attacks are targeted at small to mid-size businesses.

 “We’re seeing significant growth in demand for cyber insurance from the SMB sector,” commented Palotay. “It’s not just the large corporations with large volumes of credit card data that are targeted. Often, it is employees of smaller companies falling prey to social engineering or phishing scams that lead to a breach or other criminal activity which really hurt the small and mid-sized businesses.”

Further details about each of these policy enhancements and coverages can be found on the NAS website as well as on the policy forms.