PSBA Bulletin Special Conference Issue - Page 33

expert advice
Who we are

expert advice

Cyber Insurance :

Q & A with CM Regent

Who we are

CM

Regent offers a wide variety of insurance products and services to schools around the country , including cyber and privacy protection coverage also known as cyber insurance , underwritten by Chubb . This insurance protects schools from claims arising from unauthorized access to the school ’ s confidential records and information , as well as failure of network security and media liability . There is also coverage for regulatory actions , fines and penalties , where permissible by law . The policy also has first-party coverage available , such as cyber incident response fund , business interruption , digital data recovery , telephone toll fraud and network extortion coverage . Available coverage by endorsement for cybercrime includes computer fraud , funds transfer fraud and social engineering fraud – when an outside party tricks an employee into transferring money through impersonation or other means .
How are we helping districts assess and reduce risk at their schools ?
As simple as it sounds , just by filling out the application for the insurance , schools have to review their policies and procedures to evaluate what steps they are taking to protect the sensitive information that they collect . The coverage is underwritten based on how well they are protecting their information and equipment , so we try to point out any weakness that we see when we evaluate their application answers .
What are some of the resources that are available to schools through CM Regent ?
By purchasing a cyber policy through CM Regent and underwritten by Chubb , the insured has access to a Cyber Incident Response Coach hotline . That provides them somewhere to turn in the event there is a potential for an intrusion or “ hack ” to their system . Many times , it ’ s difficult to tell if an intrusion has occurred or not , and this gives the insured another avenue to discuss what is going on and get help . It ’ s a very valuable tool since every minute counts in these situations .
Also , along with the policy , Chubb provides the insured with access to a Cyber Incident Response Team and Cyber Loss Mitigation Services , a group of vendors that Chubb has pre-approved and , in many instances , with which they have negotiated reduced rates . They can be of help to a school either pre- or post-incident . For example , pre-incident , the insured can get access to a password manager app and help identifying key cyber exposures . Postincident , the insured can get help finding assistance with notification services , computer forensic specialists and public relations .
How is CM Regent helping to protect Pennsylvania schools ?
The insurance program provided by Chubb through CM Regent offers very robust coverage as well as other services , as noted , to help a school both before and after an incident . The policy is structured especially for schools , with policy language that is geared to their unique exposures .
What challenges are schools facing and how is CM Regent helping to execute effective solutions ?
It ’ s been widely reported in the press that during the current environment of virtual learning , schools have become a favorite target of cyber hackers . The instances of cyber extortion are rapidly rising , and the claims reported by schools have increased dramatically in the past few years . In 2018 the average ransomware demand was about $ 60,000 , which has increased to around $ 600,000 in 2020 , based on the data from Chubb . In addition to trying to make sure we offer the broadest coverage that we can for our school insureds , we try to point out areas where claims can occur , for example , by identifying a certain network that doesn ’ t have proper security or trying to identify vulnerabilities in their systems . B
Special Conference Issue 2021 PSBA Bulletin 31