CUNA Mutual To Offer Data Breach Coverage
MADISON, Wis. – CUNA Mutual Group has teamed with Kroll Inc. to offer a new insurance policy and related services that protect credit unions and their members in the event of an internal data breach that compromises sensitive member data.
Called Cyber & Security Incident (CSI) Package, the policy will become available to credit unions and other organizations today. CSI Package pairs a broad insurance policy with two levels of data breach services.
“The evolution of the cyber world and virtual servicing are creating an emerging set of new risk exposures for credit unions,” said Chuck Cashman, director of CUNA Mutual Credit Union Protection Product Management. “Stolen laptops, employee sabotage, network hackers, lost data disks and negligent data disposal are some of the potentially catastrophic risks credit unions face.”
Cashman explained the risks are linked to security incidents or direct breaches of credit union data, unlike the highly publicized third-party data breaches at retailers or merchant processors. “An internal data breach can result in more than lost data. It can damage a credit union’s reputation, shake members’ trust, and cost tens of thousands of dollars to repair.”
According to the Identity Theft Resource Center, 42 data breaches involving financial institutions have occurred in 2010, and 62 incidents occurred in 2009. Additionally, the 2008 CUNA Technology & Spending Report stated more than 40% of credit unions experienced at least one incident of ID theft in 2008.
The CSI Package has two available policies that address losses not typically covered by traditional insurance policies, according to Cashman. The CSI Basic Policy and the CSI Advantage Policy both contain liability and expense insurance components manufactured and underwritten by CUMIS Insurance Society, Inc., a member of the CUNA Mutual Group. Credit unions can select the entry-level basic policy or the Advantage Policy, which contains additional coverages, Cashman said.
Kroll, a risk consulting company, is headquartered in New York.