What Are Commercial Cyber
Insurance Endorsements?

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What Are Commercial Cyber Insurance Endorsements?

What Are Commercial Cyber Insurance Endorsements?

What Are Commercial Cyber Insurance Endorsements?. A commercial cyber insurance endorsement can either add, remove or exclude certain coverages. It's a form that becomes part of your insurance policy, altering your policy coverage.

For example, any changes made to the basic policy the commercial insurance carrier files with the state regulators is done by using endorsements. Common changes might include: Changing the business address, adding more coverage, excluding coverage for specific exposures. Commercial Cyber Endorsements allow you to make these changes - without having to buy another policy or take the chance of having risks go uninsured.

So what are commercial cyber insurance endorsements? Read on to discover the many types of endorsements available for commercial cyber insurance policies.

What are commercial cyber insurance endorsements? Endorsements modify the basic Commercial Cyber Policy to either add, delete, or exclude certain types of coverage.

COMMERCIAL CYBER ENDORSEMENTS NUMBERING


So what are commercial cyber insurance endorsements?. It is arranged by form number and title and includes a brief explanation of the use of each form. This section does not include any state specific endorsements, changes, or amendments.

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning:
  • The first two entries are alphabetical characters that indicate the line of insurance involved. For example, CY denotes Cyber Insurance.
  • The next two digits are grouped by category purpose.
  • The next two digits are the form or endorsement number within the insurance category.
  • The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

Note: Some of the endorsements had previously been used with ISO Electronic Commerce Program so were previously identified as "EC" but are now identified as "CY."

Endorsements are grouped in categories according to their purpose as follows:

Form Endorsement
CY 01Primary Coverage Forms
CY 10General Endorsements
CY 20Coverage Changes Endorsements
CY 21Terrorism Endorsements


What Are CY 01 - Primary Coverage Forms?

The CY 01 - Primary Coverage Forms are as follows:

CY 00 01-Commercial Cyber Insurance Policy

Designed to be used for small to medium commercial entities both for profit and not for profit and governmental entities.

CY 00 10-Information Security Protection Cyber Policy

Designed to be used for medium to large commercial entities both for profit and not for profit and governmental entities. It cannot be used with financial institutions or enterprises with media or information exposures.

CY 00 11-Financial Institutions Information Security Protection Cyber Policy

Only used with financial institutions.

CY 00 12-Media and Information Security Protection Cyber Policy

Designed to be used for medium to large commercial entities both for profit and not for profit and governmental entities with media or information exposures. Insuring agreement 1 is on an occurrence basis.

CY 00 13-Media and Information Security Protection Cyber Policy

Designed to be used for medium to large commercial entities both for profit and not for profit and governmental entities with media or information exposures. Insuring agreements 1 is on a claims-made basis.

What Are CY 10 - General Endorsements?

The CY 10 - General Endorsements are as follows:

CY 10 01-Policy Changes

(Use with all Coverage Forms)

Used to make changes to the policy.

CY 10 03-Nonbinding Arbitration

(Use with all Coverage Forms)

This endorsement establishes the framework and working rules for submitting a claim made against the insured to non-binding arbitration in cases where coverage is disputed.

CY 10 04-Binding Arbitration

(Use with all Coverage Forms)

This endorsement establishes the framework and working rules for submitting a claim made against the insured to binding arbitration in cases where coverage is disputed.

CY 10 05-Calculation of Premium

(Use with all Coverage Forms)

This endorsement is used on multiple year policies to calculate revised premiums at each anniversary.

What Are CY 20 - Coverage Changes Endorsements?

The CY 20 - Coverage Changes Endorsements are as follows:

CY 20 01-Supplemental Extended Reporting Period

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

This endorsement provides an extended reporting period as described in the policy and applies for the time period scheduled on the endorsement. One very important feature is the new supplemental aggregate limits provided for claims first received during the supplemental extended reporting period. This endorsement cannot be cancelled when the premium for it is paid. The named insured must request the endorsement in writing within 60 days after the end of the policy period.

CY 20 02-Include Specific Individuals as Employees

(Use with all Coverage Forms)

The individuals named in the schedule are considered employees in addition to those persons considered as employees within the definition of employee within the policy.

CY 20 03-Amend Territory Condition for Wrongful Acts or Suits

(Use with all Coverage Forms)

Territory is changed based on entries made on the endorsement.

CY 20 04-Amend Territory Condition - Suits Worldwide

(Use with all Coverage Forms)

The limited territory in which to bring suits is expanded to worldwide.

CY 20 05-Agreed Value For Business Income

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

The valuation to calculate business income is changed to an agreed value hourly amount as described in this endorsement.

CY 20 06-Amend Definition of Security Breach

(Use with all Coverage Forms)

The definition of security breach is revised to eliminate coverage for non-electronic information.

CY 20 07-Exclusion - Regulatory Agency

(Use with only CY 00 11)

All coverage for regulatory agency loss or defense expenses is eliminated.

CY 20 08-Include Retroactive Date For Named Subsidiary(ies)

(Use with all Coverage Forms)

Because of differences in prior policies, a subsidiary policy may require a retroactive date that differs from the retroactive date on the policy. This endorsement provides that needed flexibility.

CY 20 09-Amend Defense and Settlement Provision

(Use with all Coverage Forms)

The penalty for not agreeing to settle is loss of defense expense and that if the claim settles in excess of the proposed settlement, the insured is responsible for that access. This endorsement modifies that amount by the percentage entered in the schedule.

CY 20 10-Provide Coverage for Dishonest, Malicious, or Fraudulent Acts Committed By Employees

(Use with all Coverage Forms)

In the coverage form the acts described in this endorsement provides as exception under insuring agreements 1 and 6 if the acts are committed by employees. This endorsement expands that exception to apply to all insuring agreements.

CY 20 11-Provide Coverage for Unintentional Errors and Omissions

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

An error that occurs because of an electronic data entry, made unintentionally, into a computer system is covered by the removal of exclusion 24.

CY 20 12-Payment Card Industry (PCI) - Provide Coverage for Defense Expenses and Fines Or Penalties

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

Coverage is provided for defense expanse and fines and penalties because of non-compliance with the Payment Card Industry (PCI) Data Security Standards. The limit is a sublimit entered on the schedule. This applies only to insuring agreement 2. This differs from CY 20 19 above by covering only both expense and loss.

CY 20 13-Computer and Funds Transfer Fraud

(Use with CY 00 10, CY 00 12, CY 00 13)

The computer and funds transfer fraud insuring agreement is added to the policy. It does not contain a separate sublimit of insurance so is subject to only the policy aggregate limit of insurance. The coverage provided is similar to insuring agreement 6. in the commercial crime coverage forms and policies.

CY 20 14-Computer Fraud

(Use with only CY 00 11)

The computer fraud insuring agreement is added to the policy. It does not contain a separate sublimit of insurance so is subject to only the policy aggregate limit of insurance.

CY 20 15-Telephone Toll Fraud

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

The telephone toll fraud insuring agreement is added to the policy. It does not contain a separate sublimit of insurance so is subject to only the policy aggregate limit of insurance. The coverage provided is similar to its Crime Coverage counterpart.

CY 20 16-Exclusion - Social Media

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

An exclusion is added to exclude employee wrongful acts on social media website or blog. This exclusion applies to only insuring agreement 1.

CY 20 17-Exclusion - Software Infringement

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

An exclusion is added to exclude the infringement of copyrighted software, its code, or its license. This applies to all insuring agreements.

CY 20 18-Exclusion - Specific Subsidiary or Other Entity

(Use with all Coverage Forms)

The subsidiary or subsidiaries that are scheduled on this endorsement are excluded from all coverage.

CY 20 19-Payment Card Industry (PCI) - Provide Coverage for Defense Expenses

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

Coverage is provided for only defense expanse because of non-compliance with the Payment Card Industry (PCI) Data Security Standards. The limit is a sublimit entered on the schedule. This applies only to insuring agreement 2. This differs from CY 20 12 above by covering only expense and not loss.

CY 20 20-Additional Insured - Designated Person or Organization

(Use with all Coverage Forms)

This endorsement adds the party on the endorsement schedule as an additional insured for the selected insuring agreements. This is only for losses caused by the named insured's wrongful acts or wrongful acts of others that act on its behalf within the scope of their duties. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires.

CY 20 21-Change Extended Period to Discover Loss

(Use with all Coverage Forms)

The number of days in which to discover loss is increased to the scheduled numbered entered on this endorsement. The change of the number of days does not impact the other parts of the policy that might reduce how many days actually apply.

CY 20 23-Amend Definition of Cyber Incident - Broadened Denial of Service Coverage

(Use with all Coverage Forms)

The cyber incident definition is broadened by including any denial or service instead of those incidents which are directed specifically to the named insured.

CY 20 24-Right to Select Counsel

(Use with all Coverage Forms)

Section IV - Defense and Settlement - is amended by the additional of item 2. that explains how the insured can be granted the right to select counsel and establishes the relationship of the insurance company and that selected counsel.

CY 20 26-Exclusion - Unintentional Errors or Omissions

(Use with only CY 00 01)

Coverage for an error that occurs because of an electronic data entry, made unintentionally, into a computer system is excluded.

CY 20 27-Computer and Funds Transfer Fraud

(Use with CY 00 01)

The computer and funds transfer fraud insuring agreement is added to the policy. It does not contain a separate sublimit of insurance so is subject to only the policy aggregate limit of insurance. The coverage provided is similar to insuring agreement 6. in the commercial crime coverage forms and policies.

CY 20 28-Payment Card Industry (PCI) - Provide Coverage for Defense Expenses and Fines or Penalties

(Use with CY 00 01)

Coverage is provided for defense expanse and fines and penalties because of non-compliance with the Payment Card Industry (PCI) Data Security Standards. The limit is a sublimit entered on the schedule. This applies only to insuring agreement 6. This differs from CY 20 29 below by covering both expense and loss.

CY 20 29-Payment Card Industry (PCI) - Provide Coverage for Defense Expenses

(Use with CY 00 01)

Coverage is provided for only defense expanse because of non-compliance with the Payment Card Industry (PCI) Data Security Standards. The limit is a sublimit entered on the schedule. This applies only to insuring agreement 6. This differs from CY 20 28 above by covering only expense and not loss.

CY 20 30-Include Retroactive Date

(Use with CY 00 01)

Most claims-made policies and coverage forms contain a retroactive date but this coverage form does not. This endorsement introduces the retroactive date for Insuring agreements 1., 2., 3., 4., and 6. The retroactive date is entered on the schedule limiting coverage to only events that take place after the retroactive date and prior to the expiration date of the policy.

CY 20 31-Include Retroactive Date

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

Most claims-made policies and coverage forms contain a retroactive date and this coverage form does too, but only for Insuring Agreements 1., 2., and 3. This endorsement introduces the retroactive date for Insuring agreements 4., 5., 6., 7., and 8. The retroactive date is entered on the schedule limiting coverage to only events that take place after the retroactive date and prior to the expiration date of the policy.

What Are CY 21 - Terrorism Endorsements?

The CY 21 - Terrorism Endorsements are as follows:

CY 21 01-Caps on Losses from Certified Acts of Terrorism

(Use with all Coverage Forms)

CY 21 03-Exclusion of Certified Acts of Terrorism

(Use with all Coverage Forms)

CY 21 08-Conditional Exclusion of Terrorism (Related To Disposition of Federal Terrorism Risk Insurance Act)

(Use with all Coverage Forms)

CY 21 09-Exclusion of Terrorism

(Use with all Coverage Forms)

CY 21 10-Extended Reporting Period for Terrorism

(Use with CY 00 10, CY 00 11, CY 00 12, CY 00 13)

What Are Commercial Cyber Insurance Endorsements? - The Bottom Line

What are commercial cyber insurance endorsements? An endorsement alters the Commercial Cyber Policy and becomes part of your commercial insurance agreement, and it remains in force until the contract term expires.

The only exception to the above rule is if the commercial cyber endorsement has a specific or limited term to which the endorsement is valid. It may renew under the same terms and conditions of the rest of your policy.

Additional Commercial Insurance Endorsements Information

Learn about small business commercial endorsements that add, remove, or change your policy's coverage by altering the standardized coverage form.


Commercial Insurance Endorsements

So commercial insurance endorsements allow you to customize your policy to better fit your business insurance needs without having to buy a new policy.

So business insurance endorsements can either modify the basic policy by removing coverages that you don’t need, or remove one or more exclusions, adding those coverages back into the policy.

There are many types of commercial insurance endorsements - and while some favor the insurer (by excluding coverage) and some benefit the insured (by adding coverage), below is a list of some of the most common uses for business insurance endorsements:


  • Additional Insured: This is one of the most common endorsements that adds someone other than you to your insurance policy. It is typically required by some sort of contract. Common additional insureds are landlords, general contractors, vendors or customers.
  • Administrative Changes: Newly issued policies can include mistypes, misspellings, or missing words altogether. To correct these errors, the insurer would add an endorsement, rather then having to cancel and issue a new policy. If a policyholder changes their name, an endorsement would reflect that too.
  • Changing Or Adding Addresses: This endorsement covers any change to the insured's property like moving your office to a new location, or expanding to a another location.
  • Deductible Changes: This endorsement manages who can change your deductible as well as when and how much it can be changed.
  • Increased Limits: Occasionally companies need to add endorsements to increase the limits of insurance. For example, you'd use an endorsement to extend workers' compensation benefits not covered by state law. Or, to get a contract you need higher limits on your general liability policy.

Making a policy change usually affects your insurance premium. Anytime coverage is altered there is likely a cost associated with how the policy premium is calculated. Adding coverage usually makes the premium increase, while excluding coverage can reduce the premium you pay.


Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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