Tag Archives: business insurance

Cyber Liability Insurance: Are you Covered in the Event of a Cyber Attack?

What do Kmart, American Express, Target, Home Depot, and eBay, have in common? They are all part of massive data breaches where hackers stole and exposed customer records for monetary gain. The frequency of these cyber-attacks has increased year over year which has put Cyber Liability Insurance in the spotlight.

Odds are that if you’re reading this post, you most likely have a LinkedIn account. In May of this year, hackers stole 167 million (yes, you read that right) accounts from the social media giant. This left Cory Scott, LinkedIn’s Chief Information Security Officer, with a logistical nightmare trying to sort out the mess.

In addition to LinkedIn, Target was unfortunately struck by a similar breach. 40 million credit cards were compromised and 70 million accounts were hacked.


Yes these are global brands, but small businesses also see breaches on a consistent basis — really any company that relies upon technology is vulnerable to an attack.

If your business is hacked, having Cyber Liability Insurance can greatly help you through this tough time. In this post, we’ll quickly explain the scope of a cyber policy and how it can help you in the event of a hack.

What Cyber Liability Insurance Covers

Cyber Liability Insurance is a combination of four components:

  • Errors and Omissions
  • Media Liability
  • Network Security
  • Privacy

Errors and Omissions: E&O covers claims arising from errors in the performance of your services. This can include technology services, like software and consulting, or more traditional professional services like lawyers, doctors, architects, and engineers.

Media Liability: These are advertising injury claims such as infringement of intellectual property, copyright/trademark infringement and libel and slander. Coverage here can extend to offline content as well.

Network Security: A failure of network security can lead to many different exposures, including a consumer data breach, destruction of data, virus transmission and cyber extortion. Network security coverage can also apply if you’re holding trade secrets or patent applications for a client, and that information is exposed due to a failure of your security.

Privacy: Privacy doesn’t have to involve a network security failure. It can be a breach of physical records, such as files tossed in a dumpster, or human errors such as a lost laptop, or sending a file full of customer account information to the wrong email address. Companies have also faced liability from returning a photocopier with a hard drive that contained customer tax records.

As the holiday season approaches and online sales increase, we at Chase Clarke Stewart & Fontana, recommend that businesses, large and small, make sure they know if they’re covered in the event of a hack. Fill out the form or give us a call at 1.413.788.4531 to talk to a friendly representative.

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Business Contingency Planning

What is a business contingency plan? Do you have one for your business?

Another word for contingency is emergency, so a Business Contingency Plan refers to how you react to a disaster that affects your business operations.

The 3 Steps to Business Contingency planning are:

  1. Identify Potential Issuesbusiness contingency
    • Make a list of potential disasters, natural or otherwise.
    • Determine temporary back up facilities.
    • Make sure key business documents are saved and stored offsite. This can include cloud storage that can be accessed online.
  2. Develop An Action Plan
    • Create an evacuation plan.
    • Assign roles such as crisis manager.
  3. Make sure employees are well informed
    • Keep a list of employee emergency info offsite.
    • Have emergency drills


We thank Arbella Insurance for these tips.

Contact your local insurance agent for more tips for protecting your business.

Medical Records Data Breach

Is your medical office covered in the event of a data breach?

A data breach is loss, theft or even publication of personal information.

Medical offices are for healing and care.  Trust and confidentiality is a major part of the practice. Don’t let a medical records data breach put your patients at risk.  According to a the Verizon data Breach Investigations Report of 2013, “66% of data breaches investigated were not discovered for months or years after.”  We know your patients personal information is too precious to take this chance.

Data Breaches occur when information is lost or stolen.

Is your office at risk for a medical records data breach?

Ask yourself:

  • How secure are your medical records?
  • Are your computer “firewalls” up to date?
  • Do former employees have access to patient files?


Peggy data breach



Peggy Marshall is ready to speak with you about data breach coverage and tips  for securing your business.

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Green Roof Technology

green roofHave you heard of this new trend,the green roof? I’m not talking about painting your roof green.  Many are using this technology for their buildings. Scroll down to learn more about this technology.

What is Green Roof Technology?

Basically the green roof method refers to growing a layer of vegetation on a rooftop.  Green roof can be as shallow as two in layer or multiple layers depending on the overall goal. They can be installed on industrial buildings and residences.  Many metro areas are adopting these methods into their building codes to reduce heat that builds up, and help the environment.

The Environmental Protection Agency also has more information.


Improve health and comfort: These roofs reduce the amount of heat that gets transferred during the summer months especially during heat waves.

Reduce Energy:  Green roofs act as insulators for buildings, reducing the amount of energy needed to heat and cool the building.  Keeping the Building cooler in the summer and warmer in the winter.

More Benefits and Tips for Green Roofing


Terrorism Insurance for Business! Coverage, or not?

Have you heard about terrorism insurance?

There has been a lot of chatter about terrorism coverage since the Boston Marathon disaster.  Upwards of 400 businesses employing over 7,000 people in the area of the blast were affected with an economic impact upwards of 300 million dollars.  Will your business insurance pay for these claims?  That is a good question.  My quick answer is to contact your insurance agent/company.  Do not assume that you don’t have coverage, always call.

The 2002 law was enacted after the 9-11 attacks of the Twin towers in New York City.  This law tells when insurance will and will not cover losses for acts of terrorism.  Under the Terrorism Risk Insurance Act of 2002, effective November 26, 2002 (the “Act”), you have a right to purchase insurance coverage for losses arising out of acts of terrorism, as defined in Section 102(1) of the Act:

The Term Certified Act of terrorism means any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State, and the Attorney General of the United States – to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States mission; to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the united States or to influence the policy or affect the conduct of the United States Government by coercion; and that causes losses of at least $5,000,000.

So, lets break all that down.   All of the following must be met in order for the terrorism act of 2002 exclusion.

  • Treasury Secretary declares certified act of  terrorism
  • Must be intent to “coerce civilian population” or influence U.S. policy
  • Losses must total at least $5,000,000

Some businesses may not collect insurance if all three of the above are met and they have not elected to purchase terrorism coverage.

How does my business get Terrorism coverage?

Most commercial insurance policies offer Terrorism coverage for an additional premium while some insurance companies include Terrorism coverage in their policies without additional cost.  Typically terrorism coverage costs between 2% – 4% of the insurance policy premium.  Most commercial policies provide a policyholder disclosure notice offering certified terrorism insurance coverage.  You have a choice to elect to purchase coverage or reject coverage for certified acts of terrorism coverage.

Should you elect to purchase certified terrorism coverage, you should know that coverage for losses caused by certified acts of terrorism is partially reimbursed by the United States under a formula established by federal law.  Under this formula, the United States pays 90% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company for providing the coverage.

I suppose no one is immune from certified acts of terrorism.  It may be a good idea to take another look at your commercial insurance policy and consider purchasing Terrorism coverage.

It is sad to think that we have to even think about discussing this topic!