Certain insurers include additional beneficial coverages. ProAssurance adds on in states where permitted a Cyber Risk Endorsement. The base cyber endorsement adds $25,000 in coverage for certain cyber events. Given the increased frequency of data breaches and cyber-attacks cyber insurance is an essential coverage. Increasing the limit to $250,000 is done with an additional premium.
1. The Declarations of this policy (Form LCP101) is amended by adding the following:
To Item 3: Cyber Retroactive Date applicable to claims for cyber injury or data breach expenses:
To Item 4: Cyber Limit of Liability applicable to claims for cyber injury or data breach expenses
$TBD Each Claim
To Item 5: Cyber Deductible applicable to claims for cyber injury or data breach expenses
$2,500 Each Claim
While this cyber endorsement provides valuable coverages it does exclude lost funds due to a data-breach or cyber-attack.
Damages does not mean and shall not include:
(i) the return or restitution of legal fees, costs, and expenses charged by the Insured;
(ii) any funds belonging to or owed to any Insured’s client, trust account funds, or funds of any other person held by any Insured in any capacity, allegedly misappropriated, whether by an Insured or any other person, and whether intentionally or not, or interest thereon; or
(iii) the Insured’s future royalties or profits, restitution, disgorgement of profits by the Insured, or the costs of complying with orders granting injunctive relief.
Typical of endorsed cyber coverage on an attorney malpractice insurance is this monetary exclusion, a properly endorsed crime or standalone cyber policy provides protection for monetary perils. It should be noted that a few other insurers either package a similar cyber endorsement or offer it for an additional fee. Click here to download the entire ProAssurance Cyber Risk Insurance Endorsement.
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Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as
L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
(616) 940-1101 Ext. 7080