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Cyber Risk & Privacy Liability Forum: Claims Claims Claims and Dissecting a Data Breach Claim


Product Code - LGN183
Speaker(s): Moderator: Peter Foster, Willis North America FINEX; Beth Diamond, Beazley Group; Anthony Dolce, Esq., Chubb & Son; Mark Greisiger, NetDiligence; Thomas Kang, Ace; Roc Starks, CIC, CRM, ARM, Citizen Financial Group; Brad Vatrt, AIG; Moderator: John Merchant, AIG; Larissa Crum, Immerson Ltd.; Ozzie Fonseca, Experian® Data Breach Resolution; Winston Krone, Kivu Consulting; Ronald I. Reather, Jr., Faruki Ireland & Cox PLL; Alfred Saikali, Shook Hardy & Bacon LLP; Ben Zviti, Travelers
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Bloomberg BNA is pleased to present this program in partnership with HB Litigation Conferences LLC. The live event was co-produced by HB and NetDiligence®.

Claims Claims Claims
Cyber breach claims are a growing concern in today’s insurance liability market. When working with this type of claim it is vital to understand the entire claims process and to be able to recognize what types of cyber breaches exist as well as the associated costs. The panel assembled for this session provides an overview of cyber breach claim trends and addresses the topics listed below from an insurance carrier and legal perspective.

The audience will discover:

• Results of an annual claims study
• When voluntary notice is a good practice
• The language in a notice letter
• When credit monitoring is necessary
• Breaches in the notification process
• The differential in cost when responding to a first breach versus a second breach
• Claim managers' frustrations
• How a risk management team prepares for a data breach
• How companies are responding to data breaches
• What types of breaches are occurring the most
• Payment Card Industry (PCI) fines
• Claims outlook

Dissecting a Data Breach Claim
This panel of experts took a deep look into a data breach claim how a company should respond to a data breach step-by-step. You will also be given keen insight from a legal and insurance carrier perspective that tells you what you should do when a breach occurs as well as what not to do. Sometimes what seems logical at the time can create more problems than you're trying to solve. The panel also discusses best practices that a company can take to prepare themselves for a breach.

• What should you do when you realized there has been a breach?
• What are the risks of not involving an attorney early in the process?
• Should you call the police?
• Are two breaches ever the same?
• Is the post-breach process different when a company is not insured?
• When does a data breach incident end?
• Current cases you should know about.

Program Level: Intermediate

Moderator: Peter Foster, Willis North America FINEX; Beth Diamond, Beazley Group; Anthony Dolce, Esq., Chubb & Son; Mark Greisiger, NetDiligence; Thomas Kang, Ace; Roc Starks, CIC, CRM, ARM, Citizen Financial Group; Brad Vatrt, AIG; Moderator: John Merchant, AIG; Larissa Crum, Immerson Ltd.; Ozzie Fonseca, Experian® Data Breach Resolution; Winston Krone, Kivu Consulting; Ronald I. Reather, Jr., Faruki Ireland & Cox PLL; Alfred Saikali, Shook Hardy & Bacon LLP; Ben Zviti, Travelers

Claims Claims Claims
Moderator: Peter Foster, Executive Vice President, Network Security & Privacy, Media, Tech Professional and Intellectual Property National Resource, Willis North America
Peter consults with companies across varied industry sectors on emerging risks associated with Network Security & Privacy, Media, Technology, Errors & Omissions and Intellectual Property. Peter focuses on combining insurance and preventative risk management services while helping corporations adequately address technology, intellectual property and media liability risks. Peter co-developed the Financial Institution Network Security, Media and Privacy policy. Peter first developed a Willis-exclusive endorsement to respond to the expenses incurred when complying with data security breach notification laws. The cover is now offered by all of the Cyber Risk insurance markets. Peter is quoted extensively in numerous industry and national publications and has spoken throughout the United States and in Canada, London, Tokyo, Rotterdam, Johannesburg and Hong Kong and has published articles in Financial Executive Magazine, Business Insurance, The John Liner Review and Public Risk Magazine. As an underwriter, Peter created one of the first Intellectual Property Infringement policies.

Beth Diamond, Beazley
Beth Diamond is the Claims Team Leader for Technology, Media and Business Services claims at Beazley, and a member of the governing SL Claims Management Team. Ms. Diamond has extensive experience in data privacy and cyber security matters, assisting insureds in navigating through immediate and comprehensive responses to data breaches and network intrusions. She speaks frequently in national and international forums on issues of privacy, computer security and insurance, and is considered a leading and respected voice in privacy claims. Prior to joining Beazley, over seven years ago, in January 2006, Ms. Diamond spent over eleven years as a practicing attorney at a large international law firm in New York, specializing in complex commercial litigation. While in private practice, Ms. Diamond handled litigation in state and federal courts, bench and jury trials, as well as domestic and international arbitrations. Ms. Diamond also regularly provided litigation advice on corporate deals, and is a trained mediator. Ms. Diamond graduated from Wellesley College, and Cornell Law School, where she was the Senior Articles Editor of the Cornell Journal of Law and Public Policy and was named to Who’s Who of American Law Students. She completed a federal clerkship in 1996 for The Honorable Alfred J. Lechner, Jr., United States District Court, District of New Jersey.

Anthony Dolce, Esq., Chubb Specialty Insurance
Anthony Dolce is currently an Assistant Vice President of Chubb Specialty Insurance and is a Senior Regional Technician in their Claim Department. He currently handles and oversees complex claims in various lines of business, including both Cyber and media matters. Mr. Dolce received his undergraduate degree from the University of Connecticut in 1993 and received his JD degree, with honors, from the University of Connecticut School of law in 1996. He served as the law clerk to the Chief Judge of the Connecticut Appellate Court and practiced law for several years at the Connecticut law firm of Murtha Cullina. Mr. Dolce joined Chubb in 2001, and since then has held a number of different positions with the company. These positions include, managing the Chubb media claims team, as well as overseeing the handling of complex matters in the professional liability area.

Mark Greisiger, NetDiligence
Mark Greisiger is the President of NetDiligence which provides cyber risk assessment services for Risk Managers to help them better understand if their organization deploys reasonable & prudent security and privacy safeguards in an effort to mitigate data breach loss & liability risk. Since 2001 NetDiligence services have been utilized (and often required) by the majority of insurers in US & UK that offer privacy liability insurance products, providing loss control services for their insured business clients. Prior to starting NetDiligence Mr. Greisiger worked for over a decade in the insurance industry where he developed and was an underwriter for an early ‘hacker insurance’ product. Mr. Greisiger is also to a frequently published contributor for various insurance & risk management publications on similar topics.

Thomas Kang, ACE Professional Risk Claims
THOMAS KANG is a Director in ACE Professional Risk Claims, where he oversees Privacy, Data Breach, Network Security and Technology E&O Liability claims. He directs the resolution of both first party data breach responses and third party claims, including regulatory proceedings and multi-jurisdictional class action lawsuits. Mr. Kang also manages relationships with law firms and vendor partners specializing in data breach response to optimize cost-effective solutions for ACE policyholders. His responsibilities include: identifying claims trends and coverage issues to proactively manage policy responses to Privacy and Data Breach incidents. Mr. Kang is a graduate of Fordham University School of Law

Roc Starks, RBS-Citizens Financial Group, Inc.
Roc Starks is the Senior Vice President, Director of Corporate Insurance with RBS-Citizens Financial Group, Inc., the U.S. banking subsidiary of the Royal Bank of Scotland (RBS); headquartered in Providence, Rhode Island. RBS Citizens Financial Group, Inc. is a $127 billion commercial bank holding company. It is headquartered in Providence, R.I., and through its subsidiaries has approximately 1,400 branches, approximately 3,600 ATMs and more than 19,000 colleagues. It operates its branch network in 12 states and has non-branch retail and commercial offices in more than 30 states. As the leader of the corporate insurance team, he is responsible for all insurance programs in the U.S., including directors and officers, banker's professional liability, workers compensation, cyber liability and numerous other insurance-related issues. Mr. Starks has over 25 years experience in both insurance and financial institution risk management. He has a bachelor's degree in Biological Sciences from Bowling Green State University in Ohio, received the CIC designation in 1992, the CRM designation in 2001 and the ARM designation in 2012.

Bradley Vatrt, AIG
Bradley Vatrt is a Complex Claim Director in the Network Security / Media / Technology Group at AIG. In that capacity, he handles the highest exposure cyber, crisis management, technology and media claims. He advises senior management, underwriters, brokers and insureds regarding coverage, litigation / dispute resolution strategies, and the business impact of lawsuits. Mr. Vatrt joined AIG in 2008, after working as a litigator in state and federal courts for a several large New York City law firms for over six years. He graduated from Villanova University with a B.A. in History, and obtained his J.D. from Fordham University School of Law.

Dissecting a Data Breach Claim
Moderator: John Merchant, AIG
John Merchant joined AIG in 2013 as Lead Cyber Specialist for US & Canada. Mr. Merchant is responsible for implementing AIG’s Cyber sales and marketing strategy and expanding and driving new sources of distribution. He has more than seven years of experience in network security and privacy, technology and management liability underwriting, in addition to more than 11 years of sales and marketing experience in the consumer products and technology industries. Prior to joining AIG, Mr. Merchant worked at Freedom Specialty Insurance Company, a Nationwide Company, as Director of Network Security, Privacy and Technology Underwriting. His department was responsible for product and business development, underwriting, sales and production for all cyber and E&O products. John is frequently invited to speak on security and privacy risk industry panels, and is a valuable and credible source for numerous insurance industry publications specializing in cyber risk.

Larissa Crum, Immersion
In August 2008, Ms. Crum was named Executive Vice President of Immersion. Ms. Crum spearheads the sales and sales strategy of Immersion’s data breach notification and call center services. Ms. Crum is a frequent speaker and panelist on issues of data breach response and preparedness. Ms. Crum is certified industry privacy professional (CIPP) through the International Association of Privacy Professionals. Ms. Crum has spent 20 years in sales and sales management in the healthcare and printing industries. Ms. Crum earned her Graphic Arts Executive (GAE) credential and has applied her extensive knowledge of print and mail, along with her healthcare knowledge, to co-create Immersion’s data breach response service. Ms. Crum earned her Bachelor’s Degree in Business Management from Juniata College in Huntingdon, PA. She was a two-time All-American for the Juniata College women’s volleyball team and inducted into Juniata College’s Sports Hall of Fame in 2005.

Ozzie Fonseca, Experian
Ozzie Fonseca is a Certified Information Privacy Professional (CIPP) who serves as Senior Director for Experian’s Data Breach Resolution Group. Mr. Fonseca has been involved in the identity protection arena for nearly a decade and is a frequent speaker and panelist regarding data breach preparedness and incident response. In his current role, Mr. Fonseca has helped thousands of organizations, of every size and virtually in every industry, respond to data compromises affecting from hundreds to millions of victims. During his tenure in the privacy industry, Mr. Fonseca has earned a strong reputation as a trusted advisor and a key asset when addressing data breaches. He consistently brings to the table his extensive practical experience in handling large-scale breach notifications, setting up incident response call centers and in providing best-in-class identity protection and fraud resolution services. Before his involvement in the world of privacy, Mr. Fonseca spent most of his career as an educator in the auto insurance, telecom and credit industries responsible for developing training programs across the corporate spectrum. Mr. Fonseca holds a Bachelor’s and Master’s degree in Business Administration.

Winston Krone, Kivu Consulting
Winston Krone manages both computer forensic and traditional investigations, business due diligence, and anti-corruption cases. Mr. Krone has a specific expertise in data breach and privacy issues at Kivu Consulting. He is an attorney qualified in the UK and California and a court-qualified computer forensics expert. Mr. Krone has over 12 years’ investigative experience and has worked on-site in 18 countries. Mr. Krone’s clients include multinational corporations, governmental organizations and high net worth individuals. Cases have included investigating theft of trade secrets and confidential data, corporate espionage, corruption and embezzlement. Mr. Krone is also an expert in the collection, preservation, use and production of digital data in criminal and civil litigation. Mr. Krone received his Bachelor of Arts in Law from Oxford University, England in 1988. He has a Master’s certificate in Computer Forensics at the University of New Haven. Mr. Krone is fluent in French.

Ronald I. Raether, Jr., Faruki Ireland & Cox
Mr. Raether has broad experience with technology-related issues brings a unique and important perspective to successfully resolving disputes and developing creative compliance programs that blend well with existing business practices. These technology-related matters have spanned a broad array of substantive legal areas, including patent, antitrust, licensing and contracts, employment, trademark, domain name disputes, and federal and state privacy statutes. When tackling new matters, this broad experience brings valuable insight not often available from attorneys that focus on a single area of the law. One recent example is Mr. Raether’s defense against claims that a company infringed a business-method patent in the wake of the Supreme Court’s decision in Bilski. Mr. Raether’s trial experience, includes an arbitration in New York City where Mr. Raether successfully defended a computer performance dispute for a major provider of computer systems, assures that the plan developed always has the ultimate goal in mind – success. Education: University of Dayton, J.D., magna cum laude, 1996

Alfred Saikali, Shook Hardy & Bacon LLP
Alfred Saikali represents companies in a variety of complex commercial matters, particularly those involving data security and data privacy law. As co-chair of SHB’s Data Security & Data Privacy Practice, Mr. Saikali helps clients adopt administrative, technical and physical safeguards to proactively minimize the risks associated with a data breach, and he keeps his clients apprised of the rapidly changing data privacy laws that govern how companies may collect, store, use, and dispose of sensitive information. Mr. Saikali also oversees and leads data breach response efforts, advising clients of applicable laws, notifying affected third-parties, liaising with law enforcement, responding to regulatory inquiries, and representing clients in litigation. Mr. Saikali is a Certified Information Privacy Professional accredited by the International Association of Privacy Professionals, and he maintains a blog (Data Security Law Journal) in which he discusses legal developments and trends in data security and data privacy law. After graduating from Boston University School of Law, Mr. Saikali served as a staff attorney to former Chief Judge Martha C. Warner at Florida's Fourth District Court of Appeal in West Palm Beach. For several years, Mr. Saikali defended companies in complex matters of all kinds, particularly those involving business disputes, appeals and personal injury claims, before developing a specialty in data security and data privacy law. Mr. Saikali co-chairs the South Florida KnowledgeNet, the local chapter of the International Association of Privacy Professionals. He is a member of the firm’s Technology Exchange Committee, the ABA’s Science and Technology Section, and the Dade County Bar Association’s Technology Committee. He frequently speaks on ways in which businesses can meet the challenges associated with the proliferation of sensitive electronic information, and in 2013, he was selected to join Law360’s Privacy & Consumer Protection Editorial Advisory Board.

Ben Zviii, Travelers
Ben Zviii currently serves as Claim Counsel for Travelers in the Bond and Financial Products Claim – Fidelity Unit. He handles and supervises complex fidelity matters for both commercial and financial institutions and is Travelers’ national cyber risk first-party claim manager. Mr. Zviti is also an adjunct professor at the Benjamin N. Cardozo School of Law.

This program’s CLE-credit eligibility varies by state. Bloomberg BNA is an accredited provider in the states of New York*, California, Pennsylvania, Texas and Virginia, and most other jurisdictions grant CLE credit on a per-program basis. At this time, Bloomberg BNA does not apply directly to the states of Florida, Rhode Island, Montana and Hawaii although credit is usually available for attorneys who wish to apply individually. Additionally, the following states currently do not grant credit for Bloomberg BNA OnDemand programming: Arkansas, Ohio, Nebraska, and Delaware. All requests are subject to approval once the live webinar has taken place or the customer has viewed the OnDemand version. Please contact the Bloomberg BNA accreditations desk if you have specific questions that have not been addressed.

If you have further questions regarding a specific state or how to file for CLE credit, please contact Bloomberg BNA customer service at 800-372-1033 and ask to speak to the CLE Accreditation Coordinator.

Hardship Policy
Bloomberg BNA offers a hardship policy for attorneys earning less than $50,000 per year. If an attorney wishes to take advantage of this option, he or she must contact Bloomberg BNA directly. For attorneys who are unemployed or earning less than $35,000 per year, a full discount off the price of the program will be awarded upon written proof of hardship. Attorneys earning between $35,000 and $50,000 per year will receive a 50% discount off the price of the program. Any attorney working in the public service sector also qualifies for a special price. If you have further questions regarding the hardship policy or seek additional information, please contact Bloomberg BNA customer service at 800-372-1033 and ask to speak to the CLE Accreditations Coordinator, or email us at accreditations@bna.com.

Questions
For more information about Mandatory or Minimum Continuing Legal Education (MCLE) requirements, visit the American Bar Association website at http://www.abanet.org/cle/mandatory.html.

*Bloomberg BNA is an accredited provider in New York for experienced attorneys only.