Arch Insurance Group Develops Netsafe 2.0 for Network Security

PRODUCT: Netsafe 2.0 and Netsafe for Canopy

COMPANY: Arch Insurance Company

BEST RATING: A+ (Excellent)

AVAILABILITY: Coverage is available through appointed agents and brokers.

FOCUS: The U.S. is a technology-dependent society. And with this reliance comes numerous network security and privacy exposures, such as cyber extortion, violation of privacy laws, unauthorized access and malware.

Arch Netsafe 2.0 is designed to safeguard a company from these types of exposures. The product protects a company’s liability to third parties, as well as its own business income and data asset loss from network security and privacy exposures.

“This product covers many of the emerging network security and privacy exposures that middle-market companies face, which have not been adequately addressed by the cyber insurance marketplace,” explains James Schibuk, vice president and national cyber product manager at Arch Insurance Group.

Schibuk says Netsafe is a “highly differentiated product because it includes coverage for regulatory fines and payment card industry assessments within the core network security and privacy offering, rather than excluding or sub-limiting them as many other policy forms do.” The product also addresses the increasing risk that comes with the usage of employee-owned devices in the workplace.

Arch Netsafe 2.0 is available on a standalone basis or via endorsement to the Arch Corporate Canopy private company management liability package policy. Policyholders also benefit from NetDiligence’s web-based service eRisk Hub, which helps effectively manage an organization’s enterprise network and privacy risk. Arch partners with providers of legal counsel, security consulting, computer forensics, credit monitoring, call center and public relations firms to offer pre- and post-breach services. This combination creates an end-to-end solution for mitigating and transferring cyber-related risk.

UNDERWRITING: The policy includes five coverage parts: network security and privacy liability, media liability, data incident response expenses (first party), business interruption and cyber extortion. The network security and privacy liability coverage includes coverage for regulatory fines and penalties, as well as payment card industry assessments without sub-limits.

Because regulatory claims and payment card industry claims can be catastrophic for small or midsize businesses, Arch offers coverage without sub-limits. Arch also provides full limits for all first-party coverage parts. Limits from $250,000 to $10 million are available with a minimum premium of $2,000 and a minimum deductible of $2,500.

Additionally, Arch offers a streamlined underwriting process for lower risk companies. The application asks a minimal number of essential questions to help agents convert nonbuyers who are intimidated by complicated applications.

MINIMUM PREMIUM: $2,000.

TARGET: Small and midsize companies with up to $500 million in revenue. Target industries include manufacturing, technology and life science, wholesale and distribution, business services and professional service firms.

COVERAGE TERRITORY: All 50 U.S. states.

CONTACT: James Schibuk, vice president, E&O, cyber, technology & media; Arch Insurance Group, One Liberty Plaza, 53^rd Floor, New York, NY 10006; 646-563-6367.

Ronimarie Acord is an IA contributor.