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commercial, corporate and employee threats. Target’s fourth-quarter earnings con? dential information? release in February 2014, revealed that

Business Interruption Coverage: Does it incurred $61 million in breach-related your policy cover privacy liability and expenses following their very public cy- losses related to cyber extortion? Can ber problem. After the company received you claim expenses related to crisis event insurance payments, its net expenses for management, and dependent business the hacking incident still totaled approx- income lass? Can you get reimbursed for imately $17 million. Few companies can digital asset restoration expenses? Are afford this type of “shock” loss and must security breach response costs covered? look to the insurance industry in order

Collaborative risk partnership: Are to transfer some of their risk, and to tap you and your insurance carrier in con- into industry expertise that can provide sistent dialogue over Cyber Liability risk mitigation support. issues? Is the carrier assisting you in Maritime professionals will continue driving the ? rm’s culture towards active to be held accountable by customers, cyber security. shareholders, and the general public for

Exclusions: Finally, what is truly their security decisions. A comprehen- covered and what is excluded in your sive cyber insurance program can serve policy? Many policies exclude Terror- as focal-point for closing cyber security ism, Acts of War, and State-Sponsored gaps, and investing in resiliency. The

Criminal Activity. Does the Cyber pol- right underwriting process can lead to icy you currently have or do the poli- assessing, correcting, and even predict- cies you are currently considering cover ing cyber exposures and their potential these emerging and destructive risks? business impact in the maritime indus-

Risks driven by a “Lone Wolf” hacker try. In order to position their ? rm to be are now a small portion of cyber crimi- insurable, risk managers must have ac- nality. Sophisticated, “state-sponsored” cess to the requisite cyber risk mitigation cyber attacks have become increasingly expertise, be able to identify and under- more common and devastating to global stand cyber risk pro? les, and be familiar businesses. with existing cyber security insurance

Commercial survival may depend coverages and exclusions. Deciding how upon the ability to rapidly reconstitute much cyber liability insurance to invest business operations following a major in, prior to experiencing a signi? cant disruptive event. If your insurance bro- breach, requires informed and inspired ker hasn’t already provided you with leadership. Corporate risk management cyber coverage that facilitates follow- policies, plans, procedures and gover- up procedures for discovered threats; nance are incomplete without a consid- access to rapid, post-incident response eration for cyber security insurance. Be resources; implementation/integration the hammer, not the nail. of monitoring and enterprise forensic tools; and regular analysis of security $UH6WUD\(OHFWULFDO&XUUHQWV policies including physical security, in- ternal controls, and data backup, then 'HVWUR\LQJ

The Author you may need to reconsider your cover- age options.

Sohre SHAFT GROUNDING (EARTHING) BRUSHES are used on propeller shafts, turbines, generators, electric motors, gears, pumps, etc. Failure to properly ground (earth) rotating shafts can result in expensive damage to

Be the Hammer seals, bearings, or other critical components.

While short-term consequences of a breach are usually fairly obvious, ?6HOI&OHDQLQJ the long-term consequences are not as clear. According to the U.S. House of ?2SHUDWHGU\RUZLWKRLO

Representatives, Small Business Sub- ?*ROGVLOYHUEULVWOHV

Committee on Health and Technology, approximately 60% of small businesses ?:RUNLQJSDUWVDUHUHPRYDEOH close their doors within half a year of during operation being victimized by cyber crime. Costs associated with ? nding & ? xing vulner- ?%UXVKLQWHUQDOVDUH abilities, updating systems, as well as

Luke Ritter (pictured) is Executive Vice insulated from casing

President at Ridge Global, a ? rm af- public relations expenses and legal fees, ?9ROWDJHDQGFXUUHQWPRQLWRUV ? liated with Ridge Insurance Solutions can conspire to destroy previously vi- are available

Company (RISCO). John Baskam is Chief able enterprises.

Underwriting Of? cer at Ridge Insurance

There are four words that no corpo- ?/LWWOHRUQRPDLQWHQDQFH

Solutions Company (RISCO). rate executive wants to hear: “the net- © 2013 Sohre Turbomachinery, Inc.

www.ridgeglobal.com work is down.” Stakes may have never www.ridgecyberins.com been higher related to the ? nancial and

SOHRE TURBOMACHINERY® INC.

reputational risk tied to cyber security 0RQVRQ0DVV86$?7HO ,1)2#62+5(785%2&20?:::62+5(785%2&20

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