1. Managing a Cyber Event Steven P. Gibson President
Dealer Risk Services, Inc.

2. A REVIEW OF THE EXPOSURE
Entities that we entrust to safeguard our Personal and Confidential information
Banks/Lending Institutions
Physicians/Medical Offices
Auto Dealerships
Of these 3...which would be the most vulnerable to a cyber/security breach?

3. DEALERSHIP AREAS OF EXPOSURE
Handling/Storage of Hard/Paper Files
Customer Files
HR Files
DMS Systems
Dealership Computer Systems/Servers
Employee Owned Devices

4. POTENTIAL PERPETRATORS
Disgruntled Employees
Terminations
Under performers
Employees with unknown issues
Outside Influences
Hackers
Competitors
Vendors

5. CLAIM/EVENT CONSEQUENCES
Cost of Legal Services
Cost of Computer Forensic Services
Mandatory Notification Costs
Call Center Services
Breach Resolution and Mitigation Services
Suits/Litigation
Individuals
Class Action
Public Relations and Crisis Management Expenses
Fines and Penalties

6. INSURANCE 101 Handling the Cost of a Loss
Risk Avoidance – Eliminating the Risk
Risk Acceptance – Accepting the entire cost of the Risk
Risk Transfer – Moving all or a portion of the Risk to a Third Party

7. CYBER – SPECIALTY MARKETS
AIG
BEAZLEY
ENDURANCE
HISCOX
LIBERTY INTERNATIONAL
CHUBB
LLOYDS

8. THE COVERAGE Insuring Clause I – Cyber & Privacy Cyber Liability
Privacy Liability
System Damage
System Business Interruption
Consequential Reputational Harm
Regulatory Actions and Investigations

9. THE COVERAGE (CONTINUED)
Insuring Clause II – Privacy Breach Notification Costs
Your Notification Costs
Third Party Notification Costs

10. THE COVERAGE (CONTINUED)
Insuring Clause III – Cyber Crime
Computer Crime
Identity Theft
Cyber Threats and Extortion
Telephone Hacking
Phishing Scams

11. THE COVERAGE (CONTINUED)
Insuring Clause IV – Multimedia & Advertising Injury
Defamation
Intellectual Property Rights Infringement
Invasion of Rights of Privacy
Content Liability

12. THE COVERAGE (CONTINUED)
Insuring Clause V – Technology Errors & Omissions
Insuring Clause VI – Court Attendance Costs
Insuring Clause VII – Crisis Communications Costs

13. THE COVERAGE (CONTINUED)
Definitions
You/Named Insured
Claim
Cloud Computing Provider
Computer Systems
Confidential Information
Hacking Attack
Security and Privacy
Third Party
Loss
Exclusions
Fines and Penalties (unless insurable by law)

14. THE COVERAGE LIMIT Limit of Liability per Claim
Aggregate Limit of Liability
How Much is Enough
Potential Exposure
Number of Records (PIIs) held
Notification Costs
$ 35 to $ 135 per Record
Public Relations Costs
Defense Costs
Normally included in Limit of Insurance
Deductibles
Retention Limits

15. THE CYBER EVENT TEAM Breach Response Team Event Analysis (forensics)
Managing the Response
Notification Letters
Credit Monitoring
Monitoring Affected Individuals
Public Relations
Initial Damage Control
Ongoing Campaigns

16. NOTIFICATION PROCESS - TIMELINE
Notification to Carrier
Carrier Breach Team investigates the extent of the breach and consults with Insured on regulations
Insured and Counsel approve notification letter
Notification letters sent with offer of Credit Monitoring Package
Responses of potentially affected Individuals are monitored

17. PUBLIC RELATIONS Post Event Public Relations Campaign Key Strategies
Designed to lessen the negative impact on sales
Reduce potential for class action litigation
Key Strategies
Manage the News
Initial Press Releases
Ongoing Ad Campaign
Initiate Preventative Measures
Reactive measures
Proactive measures

18. The Storm on the Horizon
Large Data/Security Breaches
Yahoo 500M Records
MySpace 360M Records
LinkedIn M Records
Ebay 145M Records
Target Stores 110M Records
Sony Entertainment 102M Records
Anthem M Records
JP Morgan/Chase 76M Records
Target M Records
The Home Depot 56M Records
Ashley Madison 37M Records
Office of Personnel Mgmt M Records
Excellus Blue Cross M Records
Community Health Services 4.5M Records
Neiman Marcus M Records

19. Breach Cost – example Target Stores
Class Action Lawsuits
Notification Costs
Loss of Revenues