Travelers Canada launches cyber-risk coverage

Travelers Canada has launched a product designed to limit cyber exposures and manage associated risks.‘CyberRisk’ is the newest addition to Travelers Financial and Professional Services line. It’s a standalone product with 10 coverage options that address exposures and the ripple effects associated with a cyber-related event. Third party liability coverage includes network and information security liability; communications and media liability; and regulatory defence expenses. First party coverage includes crisis event management expenses; security breach remediation and notification expenses; computer program and electronic data restoration expenses; computer fraud; funds transfer fraud; e-commerce extortion; business interruption and additional expenses.A recent U.S. study found the average cost of a data breach in 2011 was $5.9 million. “The reality is that over 35% of data breaches are caused by employee negligence, from lost laptops to failure to erase hard drives off company computers prior to their disposal,” said Jane O’Meara, assistant vice president of management and professional liability for Travelers Canada.