Comtech Wording

Question 1

What are the Insuring Clauses covered under the Comtech wording?

Answer 1

1. Professional Indemnity
2. General Liability
3. Cyber and privacy Liability / Loss

Question 2

Which coverages are included under the GL section?

Answer 2

1. Product Liability
2. Pollution Liability
3. Public Liability

Question 3

Which coverages are included under the Cyber/Privacy section?

Answer 3

1. Cyber and Privacy Liability
2. Privacy breach and notification
   and mitigation costs
3. System and data rectification costs
4. business Interruption
5. Extortion costs
6. Cyber Theft
7. Telephone phreaking

Question 4

Which sub-limited extensions are provided as standard under the Comtech policy?

Answer 4

1. Court attendance compensation (£25,000 during the period)
2. Irrecoverable fees (£500,000 during the period)
3. Public relations services (£100,000 during the period)
4. Regulatory investigations / fines (£500,000 during the period)

Question 5

Which extensions are provided under the Comtech wording

Answer 5

1. Acquisitions and formations of companies.
2. Continuous cover
3. Court attendance compensation
4. Employee indemnification
5. Irrecoverable fees
6. Joint ventures / Consortia
7. Public relations services
8. Regulatory investigations / Fines
9. Automatic and optional extended reporting periods
10. Indemnity to other parties

Question 6

How is Bodily Injury defined in the Com-tech wording?

Answer 6

The term “Bodily Injury” means bodily injury including mental injury, illness, sickness, disease or death of any person

Question 7

How is Breach of Contract defined in the Com-Tech wording?

Answer 7

Liability to a client, but to no supplier or any other party, as a result of breaching the terms of a client contract in respect of:

1. Unintentional non-conformance with the written specification.
2. Unintentional material defects within deliverables.
3. Unintentional non-compliance with terms implied by statute regarding quality, safety or fitness.
4. Negligent failure to exercise reasonable care and skill.

Question 8

How is Business interruption defined in the Comtech wording?

Answer 8

Those sums established by a loss adjuster, to reflect the difference between the insurers net profit/loss (before tax) normally achieved, and what was actually achieved, taking into account reasonable business projections, seasonal influences and economic conditions, and:

1. The insureds continuing and normal fixed costs and expenses not saved as a result of the interruption
2. Reasonable additional costs of working suffered by the insured, including overtime payments.

During a period of interruption but after any Time Retention, and solely as a result of the insureds computers being effected by Computer virus, hacking incident or denial of service attack.

Question 9

How is a Claim defined in the Comtech wording?

Answer 9

A demand by a third party for compensation or damages (including liquidated damages) from or the assertion of a right against the Insured.

Question 10

How is Cyber and Privacy liability defined in the Comtech wording?

Answer 10

A liability due to:

1. Network security incident
2. Electronic Data Breach incident
3. Physical Data Breach incident
4. E-Media incident

Question 11

How is Cyber Theft defined in the Comtech wording?

Answer 11

1. An unauthorised electronic funds transfer committed by a third party
2. A hacking incident
3. A computer virus

Which results in a theft of the Insured’s funds or money.

Question 12

How is Denial of Service Attack defined in the Comtech wording?

Answer 12

Any unlawful or unauthorised attempt by a third party to temporarily or indefinitely overload, hinder, interrupt or suspend service to a computer, via the internet.

Question 13

How is Electronic Data Breach defined in the Comtech wording?

Answer 13

The loss of, unlawful or unauthorised alteration of, inappropriate publication of, or theft of, data residing on the Insured’s Computers as a result of a virus or hacking incident.

Question 14

How is E-media Incident defined in the Comtech wording,

Answer 14

1. Libel, slander or defamation;
2. Infringement of IP rights or any unintentional act of passing off;
3. Improper deep-linking, framing, web harvesting, web scraping or data extraction;
4. Non-conformance with any legal requirement relating to discrimination;

Solely occasioned through the insureds website content, social media presence or other online platforms.

Question 15

How is Extortion Costs defined in the Comtech wording?

Answer 15

Those costs required to deal with, contain, mitigate and/or pay a ransom demand by a third party threatening to;

1. Introduce a computer virus to the Insureds computers;
2. Initiate or continue a hacking incident on the insureds computers;
3. Initiate or continue a denial of service attack;
4. Divulge, share, publicise, encrypt or utilise information held on the insureds computers;

If a ransom demand is not met.

Insurers written agreement must be obtained before any payments are made.

Question 16

How is a First Party Cyber Event defined in the Comtech wording?

Answer 16

The occurrence of the following events;

1. The physical data breach incident or electronic data breach incident which gives rise to privacy breach notification and mitigation costs as defined in the wording.
2. The computer virus, hacking incident or denial of service attack which gives rise to system and data rectification costs as defined in the wording.
3. The computer virus, hacking incident or denial of service attack which gives rise to the business interruption as defined in the wording.
4. The demand or threat by the third party which gives rise to Extortion costs as defined in the wording.

Question 17

How is a Hacking Incident defined in the wording?

Answer 17

Any electronic attack of a malicious or unauthorised nature, initiated by a third party or employee, or involving collusion between those parties, with the intention of damaging, destroying, altering, encrypting, overloading or interfering with computer systems or records irrespective of where such systems or records are hosted.

Question 18

How is a Network Security Incident defined in the Comtech wording?

Answer 18

1. A Hacking Incident;
2. A Computer Virus
3. A Denial of service Attack
4. A failure by the insured to prevent all the above.
5. The inability of a third party to access the insureds computers due to any of the above.

Question 19

How are PCI fines defined in the Comtech wording?

Answer 19

Means those fines levied against the insured due to a breach of the PCI data security standard, but only as a result of an Electronic Data Breach Incident.

Question 20

How is a Physical Data Breach Incident defined in the Comtech wording?

Answer 20

Means the loss of, misuse of, theft of, inappropriate publication of, or destruction of information, including due to employee dishonesty, which was held or once held by the insured in a non-electronic format.

Question 21

How are Privacy Breach Notification and Mitigation costs defined in the Comtech wording ?

Answer 21

Those costs incurred with insurers prior written agreement in the 12 months immediately following first discovery of a physical data breach incident or electronic data breach incident to:

1. Conduct an audit of the insureds computers to ascertain source, scope and extent of any breach.
2. Gain legal advice.
3. Comply with legal requirement to:
   (i) notify third parties and/or employees of the breach
   (ii) establish credit monitoring, identity theft or similar mitigation services.
4. Notify third parties of an actual or suspected breach where no legal requirement exists but that such notification will mitigate damage to the insureds reputation or brand.

Question 22

How are System and Data Rectification Costs defined in the Comtech wording ?

Answer 22

Those costs reasonably required to restore, replace, rebuild, replicate or reinstate the Insureds computers as a result of a computer virus, hacking incident or denial of service attack

Question 23

How is Telephone Phreaking defined in Comtech wording?

Answer 23

A hacking incident which results in the Insured’s telephone systems incurring unintended or unauthorised call charges or bandwidth charges and which gives rise to a loss.

Question 24

How is the term Time Retention defined in the Comtech wording?

Answer 24

The duration of time at the beginning of a period of interruption for which the insured shall bear their own business interruption loss.