Are Technology E&O Policies Making You WannaCry?
By now you have heard of the ransomware “WannaCry” that hit computers in an estimated 150 countries, according to CNBC. The exploit targeted Windows-based systems that were not updated with a March 2017 patch.
A cybersecurity researcher in the UK was able to bring WannaCry to a halt when he found and activated a “kill switch” in the malicious software. The attackers will most likely see how this 22-year-old researcher was able to stop WannaCry, and will then change the code and start again.
The ransomware asked for $300 in crypto currency, which increased to $600 72 hours later. Four days following the attacks, initial reports estimated the hackers made around $50,000, which means only around 167 people paid the ransom. That is a shockingly low number based on the media attention this received. So what did others do that fell victim to WannaCry? They most likely had their systems restored to the point right before they were infected, and most likely outsourced this to a technology professional.
According to IBISWorld, the information technology consultant sector is still in the growth phase with an estimated 2 million consultants nationwide. With a new focus on cloud-based services and managed services, the technology industry is expected to continue growing at a rapid pace.
A very common claim for managed services is failure to backup. While this is basic errors and omissions for the services being provided, some carriers are starting to exclude this important coverage. Often, these claims start with a client asking for their data to be restored from a back-up after they are hit with ransomware like WannaCry. When it is discovered the data is gone, the claim begins to snowball.
Don’t let technology policies make you feel like you “wannacry” because they don’t offer the coverages needed. Our Technology Errors and Omissions products have been tailored to meet the unique coverage needs of the 2017 information technology professional.
Our product features include:
- Premiums starting at $995 for errors and omissions with a preferred package
- Network Security Liability and Privacy Liability is included (in most states) at no additional premium
- Option for intellectual property coverage or media coverage
- Option for privacy breach expense and regulatory defense up to $1,000,000
- Broad definition of covered services using “included but not limited to…” wording
- Errors and omissions up to $5,000,000
- General liability included at $1,000,000/$2,000,000
- Business personal property up to $250,000
- Business income included at $50,000
Getting an instant phone quote for this product has never been easier. All you need is the applicant name, address, services provided and annual revenues.
As always, thank you for your support and business.
Contact Meredith Bennett,
Second Vice President, Underwriter | 888-523-5545 Ext. 2598
Written by Tom Langston
June 8, 2017