1. Cyber Security: The Risk to Associations Today’s Speakers:
Brian Sheehan Vice President DelCor Technology Solutions
Bobby Turnage, Jr. Partner Venable, LLP
Lou Novick President Novick Group
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2. Brian Sheehan
Technology
Copyright 2012 Novick Group, Inc.

3. Quick Quiz
October is _______ awareness month A. National Arts & Humanities B. National Adopt a Shelter Dog C. National Cyber Security Awareness D. All the above Answer: D

4. Elevate Awareness
Elevate the security discussion and awareness to the C-suite

6. ABA’s website was breached on Oct. 1.
6,400 records might have been compromised
Users accounts have been reset.
ABA said that there is no indication that credit card information has been breached, but ABA is working with a cybersecurity forensics company

7. Data Asset Inventory
What
Where
Who

8. Risk Points Assess the vulnerability level
Assess potential internal vulnerability

9. Planning from a security perspective
Budget
Ongoing Review
Response Planning
Training

10. Legal Bobby Turnage, Jr. themed title
© 2012 Venable LLP -
© 2008 Venable LLP -

11. themed title
Legal Responsibility
What are an organization’s legal responsibilities generally when it comes to protecting data in its custody?
© 2012 Venable LLP -
© 2008 Venable LLP -

12. themed title
Damage
What are the potential damages or harms that can result from a data breach?
© 2012 Venable LLP -
© 2008 Venable LLP -

13. themed title
Prevention
What can organizations do now to help prevent a data breach?
© 2012 Venable LLP -
© 2008 Venable LLP -

14. themed title
Prevention
What can organizations do today to help minimize the impact of a future data breach?
© 2012 Venable LLP -
© 2008 Venable LLP -

15. themed title
Actions to Take
What should an organization do in the event of a breach?
© 2012 Venable LLP -
© 2008 Venable LLP -

16. Insurance Lou Novick *********************
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.

17. Coverage Options
Some policies have as many as ten different coverage sections (e.g., Crises Management, 1st and 3rd party liability, business income, etc).
Understanding which are essential to protect your association is challenging.
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.

18. Limit Selections
There is no single correct amount of coverage for this type of liability risk.
Because of the limited claim experience within the association segment, peer group experience as to claims (type or severity) is useful as a guide.
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.

19. Complexity of Form
The multitude of coverage sections and the remarkably high number of defined terms (many of which are not intuitively understood outside the IT world) combine to make this one of the most complex policy forms in any association portfolio; even more so than most E&O or Professional Liability policies.
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.

20. Variability of Coverage from Carrier to Carrier
Like Directors & Officers and Professional Liability, Cyber policies are “non-standard”; in other words the organization of the policy (the topical sequence such as insuring agreement, definitions, exclusions, etc.) and the text of the policy are likely to vary from carrier to carrier.
Comparisons of coverage from one policy to the next are extremely difficult.
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.

21. Broker Resource
Even among the top tier insurance professionals, very few can claim genuine expertise in this coverage segment. The perils (causes of loss) are new and unfamiliar to most in or out of risk management and insurance. As noted, there is little (association) peer group claim experience to draw on as a guide in the selection of coverage type or amount. Significantly, the application of unfamiliar and complex policy terms and conditions (not just exclusions) to actual claims and the dearth of settled or adjudicated claim outcomes limit the ability of even a knowledgeable insurance professional to project the scope of coverage in some cases.
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.

23. Thanks for attending! Copyright 2012 Novick Group, Inc.
© 2015 The Novick Group, Inc. All Rights Reserved
All information contained herein is copyrighted by The Novick Group, Inc. All rights reserved. The information is intended for the exclusive use of our clients and others to whom we have agreed to share this with. Therefore any reproduction or modification by any third party beyond the limited use as herein described is prohibited.
The information in this document is the work product of the Novick Group, Inc. It is in no small measure the product of our quarter century of experience working with associations and nonprofit organizations. Both as a matter of law and fairness we ask that the recipient of this information limit the distribution to only our intended purpose.
Disclaimer
The above information represents our understanding of certain general policy provisions.  These are not intended, nor should they be understood to be, coverage determinations provided by or approved by any of the referenced carriers.  To the extent that this information may conflict with actual policy terms and conditions, those policy terms shall always control the applicability of coverage and the carrier alone retains the authority to make coverage and claims determinations.
© 2015 Novick Group, Inc.
Copyright 2012 Novick Group, Inc.