Cyber Liability policies designed to provide 1st party coverage as well as 3rd party protection have numerous definitions which can make it complicated to figure out what is addressed by the policy and what is not. One specific area of concern for our real estate agency clients is whether their agent’s hardware e.g. phones and laptops and their software e.g. CRMs and email accounts, etc. are included in the definition of a “Computer System” and hence addressed under the policy once a breach occurs.
PBI Group’s newly created Arch Cyber Liability policy includes a broader definition of “Computer System”. This definition now explicitly defines employee or independent contractor software used for the benefit of the Insured Entity to be included in the “Computer System” definition. This affirmative coverage position is an innovative feature for our policy because real estate agents often use their own phones/ laptops as well as a free email address from Gmail or Yahoo, etc to conduct their business. All that said, PBI Group recommends using a private domain email provider (e.g. firstname.lastname@example.org ) instead of free email services because it is harder for bad actors to create a similar looking email address and start emailing as one of your agents.
Definition from the Arch Cyber policy:
“Computer System” means any computer hardware, electronic mobile device, software or firmware, and components thereof including data stored thereon, that is owned or leased by an Insured Entity, and is under the direct operational control of an Insured Entity or any mobile device or software owned and under the direct operational control of an employee or natural person independent contractor of an Insured Entity if such mobile device or software is used for the benefit of an Insured Entity. “Computer System” also includes cloud computing and other hosted resources operated by a third party for the purpose of providing hosted computer resources to a Named Insured as provided in a written contract between the Named Insured and such third party.”
Interested in PBI Group generating a Cyber Liability or E&O insurance quote for your real estate agency? Click here.
* Every coverage situation is different, and the final outcome depends on the unique facts, law and insurance policy involved. The E&O policy contains reductions, limitations, exclusions and termination provisions that impact coverage for a specific event. Full details of the coverage are contained in the policy.