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Data Breach Insurance Plan
Program Overview
The Data Breach Insurance Plan is a new and unique insurance offering
designed specifically to meet the expenses resulting from a suspected or actual breach of
credit card data. The program is offered exclusively by Royal Group Services
(www.royalgroupservices.com) and underwritten by
Great American Insurance Group
(www.greatamericaninsurance.com), a financially strong insurance organization
whose insurance companies are rated “A” by independent third party rating agencies.
The Program Covers
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A mandatory forensic audit required by the Payment Card Industry Data Security Standard (PCI DSS) of a merchant when a data breach is suspected. |
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The data breach can be either a system/network breach or the physical theft of the credit card data from stolen receipts, stolen computers, skimming, or even employee theft.
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Card replacement costs and related expenses resulting from the data breach.
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All Level 2, 3 and 4 merchants regardless of their level of compliance with the standard. |
The Program Limits
The policy limit is $50,000 and there is NO deductible.
Frequently Asked Questions
Why do I need this coverage?
If you suffer a suspected or actual data breach, you could incur thousands upon thousands of dollars of unexpected costs in the form of audit expenses, card monitoring and replacement expenses, and fines. These costs could significantly affect revenue…and even jeopardize the existence of your business. This inexpensive policy reduces your monetary exposure when a presumed or actual data compromise occurs, thus providing peace of mind!
What insurance company underwrites this insurance policy?
Great American Insurance Group (www.greatamericaninsurance.com) has collaborated with RGS to create this program. Great American is a well-established, financially strong insurance group whose insurance companies hold “A” ratings from independent third party rating agencies.
What is the coverage amount?
The coverage limit is $50,000 per incident, for each merchant account.
Is there any deductible?
There is NO deductible!
If I have multiple locations, is each location covered for $50,000
RGS provides the coverage on a per-merchant account basis.
Can any merchant qualify for this insurance coverage?
Any Level 2, 3 or 4 merchant is eligible, provided they have not already suffered a data compromise. Level 1 Merchants are not eligible for this coverage.
Must I be PCI DSS compliant in order to get this insurance product?
No. However, if you experience a breach, you must become compliant before you can participate in (or re-enter) the insurance program.
I am a Level 4 merchant. Level 4 merchants aren't breached often are they?
Absolutely, they are! Nearly two thirds of all breaches occur at Level 4 merchant locations. In fact, Eduardo Perez, VISA USA’s Vice President of Payment Systems and Risk, stated at the 2007 Electronic Transactions Association trade show in Las Vegas, “Hackers are concentrating on the smaller merchants… that’s where we see the greatest vulnerability.”
I don’t store magnetic stripe data. Can I still have a data compromise?
Yes! While it is true that merchants that store magnetic stripe data are the most vulnerable, there are a number of other risks. For example, missing or outdated security patches, using vendor supplied default settings and passwords, SQL injections by hackers, unnecessary and vulnerable services on your servers, stolen receipts, stolen computers, employee theft, and skimming can all lead to significant data compromises and subject you to audits, card replacement costs, and fines.
I am PCI DSS compliant. Do I still need this coverage?
Yes! Certification of PCI DSS compliance is not a guarantee that a breach will not occur. The analogy that best describes the situation is this: “You can have the best alarm system in the world, but it is useless if you don’t turn it on.” Also, the insurance covers employee theft and the physical theft of data. PCI DSS compliance alone cannot prevent these losses.
How do I submit a claim?
To open a claim you simply have to: (1) complete the online claim form; (2) submit (via the web or fax) the notice from the card brand or acquiring bank that stipulates there has been (or there is the suspicion of) a data breach at your covered location; and (3) submit (via the web or fax) a copy of the invoice provided by the certified PCI DSS auditor.
To submit additional expenses on an open claim you simply have to: (1) enter your claim number in the online claim form; and (2) submit (via the web or fax) a copy of the demand for payment from the card brand or acquiring bank that explains that these demanded reimbursements/fines were the result of an actual data breach.
If I do suffer a loss, how quickly will my claim be processed?
Quickly! Once you provide the relevant documentation to RGS, the requests for payments will be processed. Assuming that the documentation is in order, the request should be processed within thirty days.
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