MCIT introduced its comprehensive data compromise and CyberOne coverage solution in January 2017. During the first 11 months, members have reported nearly 20 claims or potential claims for assistance under the coverage.
The coverage is structured to reimburse members up to $50,000 in costs under each of the following coverage sections:
- First-party data compromise response expenses
- Third-party data compromise defense and liability expenses
- First-party computer attack response expenses
- Third-party network attack defense and liability expenses
The coverage includes sublimits that serve to limit how much coverage is available for certain expenses, such as those arising from forensic IT specialists and legal consultants. The idea being that the coverage is balanced and designed to help with a variety of costs.
After consultation with the coverage partner, Hartford Steam Boiler, the MCIT Board of Directors voted at its November meeting to approve increasing several sublimits. This provides members with added coverage within the $50,000 policy limit beginning in 2018.
Based on a review of the claims submitted to date, these changes will give members greater flexibility and coverage when responding to both data compromise and computer attack claims.
2018 Coverage Declarations pages will be modified to show the following changes:
- $5,000 sublimits for both legal review and forensic IT review will be increased to $25,000 under the first-party data compromise expense coverage.
- $10,000 sublimit for loss of business will be increased to $25,000 under the first-party computer attack response expense coverage.
- $5,000 sublimit for data re-creation expenses will be removed under the first-party computer attack response expense coverage.
The net effect of these changes will allow increased coverage to members for the specific expenses most likely incurred when responding to their losses.
For more information about coverage, members are encouraged to view the appropriate Coverage Review webinar available in January.
Members may always contact their risk management consultant with their questions about MCIT Coverage. Reach them at 1.866.547.6516.