29 North Main Street West Hartford, CT 06107
What to Know About Cyber Liability Insurance

Adapt to the constantly evolving exposures on the Internet by protecting yourself and your facility

When it comes to golf facilities, as well as golf shops, the threat of a cyber-liability exposure is a concern at just about every place that conducts any portion of their business over the Internet

In regards to lost, stolen or fraudulent credit cards, you should know it’s in your best interest not to be the weak link in the transaction. Ultimately, the data collector bears the bulk of the responsibility. The only time you’re not responsible is if you are chip compliant and a counterfeit traditional card was used.

Are you in compliance with Payment Card Industry Data Security Standards? One question to ask your merchant vendor: Is all credit card information processed to the bank encrypted? Additionally, do you meet EMV Standards? Consider this example: A golf shop contracts with a third party service provider to process credit card payments. Consequently, the data is compromised while in the hands of the merchant bank. The golf shop, not the service provider, is required to notify and monitor credit of affected individuals for whom PII (Personally Identifying Information) requirements, which is a name in combination with SSN or credit card number, vary by state, industry and severity of the breach.

In addition, you may be required to set up a call center, or hire a legal team, to communicate with affected individuals. Are you insured for this expense? This is just one of the many losses that you can incur as a result of cyber liability called “Loss of Digital Assets”.

Another example is cybercrime through social engineering. Recently our bookkeeper received an email from, what appeared to be, our agency president asking to authorize a payment to another party. Luckily, the bookkeeper thought it was suspicious and called to confirm he actually authorized a payment to another party as his email indicated.

He had not, but if she didn’t ask and sent the payment, it would have been an unauthorized release of funds. We notified the FBI Cyber Crimes Unit. This is a great example of what we mean by cybercrime – are you covered for a situation like this?

While not a tangible exposure like property damage or bodily injury, cyber liability is just as important an exposure that should not be overlooked. If you or your facility has a website, or just two computers connected to each other, you have a potential exposure that most general liability policies will not cover.

Coverage options available

Cyber liability policies provide first party protection (covering loss to your shop or facility), with loss of digital assets, non-physical business interruption, cyber extortion, cybercrime and security event costs.

This includes coverage for legal fees and computer forensic costs, regulatory fines, customer notification costs and on-going credit monitoring. According to Field Nation Retail Resource Center, fines alone can range $5,000 – $100,000, forensic examinations $200- $2,000 per hour, and credit monitoring $10- $30 per customer. By the time all is done, it could cost tens of thousands if not hundreds of thousands of dollars. In addition, cyber liability insurance provides third party liability protection (those who may bring a lawsuit against you), with network security, privacy liability, employee privacy liability and electronic media liability.

The exposure to cyber liability and the universe of potential claimants is staggering. If you haven’t already, you should consider this option as part of your facility’s insurance package.

At Bouvier Insurance, we have developed the PGA Golf Course Insurance Program exclusively for PGA Professionals in partnership with Philadelphia Insurance Companies, an A+ (Superior) rated carrier. We can assist you with an evaluation of your facility’s insurance exposures and develop a customized program to suit your needs. As the endorsed property and casualty insurance provider through the PGA Preferred Golf Course Insurance Program, we look forward to working with you or your existing agent, whichever you’d prefer. Please feel free to contact us at 1-800-888-GOLF.