Nationwide subsidiary National Casualty Company (NCC) will introduce a new cyber insurance program to its playbook in the second quarter of this year. The program is scheduled to go into effect at the start of April. Dubbed the Enterprise Cyber Insurance Program, NCC’s new program will be offered through the company’s Management Liability and Specialty division, within the Excess & Surplus Group of Nationwide. It is slated to go into effect in New Jersey but will likely hit other states pending various approvals.
The Enterprise Cyber Insurance Program will offer the following coverages:
- Breach Management Expenses
- Computer System Interruption Loss
- Cyber Extortion Expenses
- Data Restoration Expenses
- Media Wrongful Acts
- Technology Services Wrongful Acts
- Professional Services Wrongful Acts
- Regulatory Fines and Penalties
- Security Incident or Privacy Violation
NCC’s Cyber security program was developed with rating factors in mind that are usually used to underwrite cyber errors & omissions coverages. Base rates will assume limits of $1 million. Limits will start at $1 million, ranging up to $25 million, signaling that this program will primarily target small to medium sized enterprises.
Rates for the program will utilize industry tiers and projected annual revenues to determine pricing and exposure for potential insureds, contemplating revenues starting at $100,000 and up to $50 million. Minimum premiums for the program will be set at $7,500.
Schedule rating will also be available, allowing for debits and credits of plus or minus 25%. Retention factors for the Professional Services Wrongful Acts coverage will start for revenues of less than $25 million and up to $10 billion, with base retentions of $10,000 up to $2.5 million available. Other coverages will start for revenues less than $50 million, ranging up to $50 billion, with base retentions starting at $10,000, ranging up to $5 million.
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