Cyber Liability

White Paper

Cyber Liability is emerging to be at least as threatening a risk as Employment Practices Liability.  While EPL is a risk often borne of some form of ignorance, Cyber is a risk founded on malicious intent seemingly offering perpetrators the allure of easily - accessed, anonymously - obtained and effectively - hidden liquid assets. Be those assets Personally Identifiable Information (PII) and / or Valuable Papers caused by a breach, the extortive threat of a destructive system outage and / or the malicious act of a rogue employee, the risk environment is rapidly evolving.

As the following chart shows, educational entities had the most data breaches in 2005. Twelve years later, business and health / medical entities have the most despite the availability of heightened security measures.


While the average per capita cost of a data breach has increased an average of 4% annually, the disparity of 2016 costs by industry is significant with the highest average per capita cost (health care) being almost 5x the lowest (public sector).

What to do?

We recommend assessing your company's exposure using our proprietary risk assessment approach. This approach relies on a collaborative dialogue about the various components of a cyber loss. It is not unusual for the discussion about the components to lead to risk mitigation options that reduces the company's risk profile. Insurance may or may not be a viable component. The key is quantifying the risk. All that is needed is the number of unique records that can be breached.  

MCMGil Goetz - Senior Vice President - Property & Casualty 

Mr. Goetz began his career as a trainee at CT Bowing & Sons Ltd., and he continued on to be a broker at Geo F Brown & Sons and a Senior Underwriter at Kemper Insurance. As a Vice President at Marsh & McLennan, Mr. Goetz supported new business efforts and ensured that clients' needs were met. Following Marsh, Mr. Goetz accepted the role as a Senior Vice President at Sedgwick of California, focused on the technology sector. He offered innovative strategic consultation to clients and lead account teams in tactical execution. Before joining Equity Risk Partners, he returned to Marsh to serve as a Managing Director and was responsible for leading client service teams that helped clients identify risks, create solutions for those risks and then implement, maintain and improve those solutions with particular emphasis on businesses with worldwide exposures and / or in the retail, wholesale, food and beverage industry.

Mr. Goetz holds a Bachelor of Arts in economics from Ohio Wesleyan University.

Contact Information:

Phone: (415) 874-7136

Michael Marcon - President, HUB International and Founder, Equity Risk Partners

Michael Marcon has more than 30 years of insurance experience, pioneering the delivery of originalinsurance due diligence to private equity firms and specializing in alternative risk financing and transactional insurance products. Before launching Equity Risk Partners, Mr. Marcon was Executive Vice President of Aon Risk Services - Mergers and Acquisitions Group and he was instrumental in creating the Private Equity practice for Aon's predecessor company, Rollins Hudig Hall. He served as Regional Manager - Finance for Transamerica Corporation, as well as positions in Special Risk Financial and Capital Management for CIGNA Corporation. 

Mr. Marcon holds an undergraduate degree in economics from Ursinus College (where he was the former chairman of the board of trustees) and an MBA in finance from Drexel University. Mr. Marcon tweets from @mcm7464 and can also be reached through his blog, Michael Marcon Tweets, where he writes about business, tradition, and life.

Contact Information:

Phone: (415) 874-7101