Deciphering Notification Laws, Hi Tech Act and Red Flags

New regulations are increasing at a rapid rate and it is vital that business owners and Chief Information Officers (CIO) become familiar with current regulations and compliance dates.

State Notification Laws require businesses to notify customers or patients in a timely matter of any data breach that might affect them. Each state has its own requirements and failure to notify per such state’s notification law could lead to fines and penalties.

The Hi-Tech Act which is part of the 2009 American Recovery and Reinvestment Act, creates a federal notification requirement for the breach of Protected Health Information. The HITECH Act also provides incentives for physicians to put into practice “meaningful use” of an Electronic Health Record system.
… Read more →

0 votes, 0.00 avg. rating (0% score)
Categories: Breach Of Security, Cyber Liability, Identity Theft, Professional Liability, Risk Management

Why Can’t I Get My Tech Professional Liability Insurance Quote Over The Phone?

Tech Insurance Frequently Asked Questions:

If I give you my information, why can’t you give me my Professional Liability quote over the phone? 

The answer is simple- We want to make sure that we are not wasting your time or ours by having to clear up misunderstandings or perhaps missing some information.  Although it seems simple that you can just give us the information over the phone, our online system thoroughly goes through the questions in a few simple steps to make sure we have every thing that we in order to get you the best quote possible. Many of our carriers will not accept an application that has been filled out by anyone other than the insured. 

By saving time on the phone, we are able to save the company as well as the insureds money in the long run by providing you with the best coverage at the most reasonable rates.

1 vote, 4.00 avg. rating (80% score)
Categories: Cyber Liability, Errors & Ommissions, Professional Liability

Data Breach Numbers Rise

“The latest U.S. Cost of a Data Breach Study… indicates a significant increase in not only the out of pocket cost of data breach incidents, but also the cost of lost business created by the turnover of customers due to the breach.”

At  $202 per comprised customer, U.S. companies have felt the brunt of data breaches.  Companies that have suffered the most from data breaches are healthcare and financial services type businesses. 

In 2008, the average cost for these incidents was $6.65 million.  And the most damaging effect is lost business averaging $4.59 million or $139 per record compromised.

Surprisingly, 49% of companies who responded to a current study stated that most breaches actually came from the theft or loss of paper documents, not electronic generated documents.

Source: S. H. Smith & Company, Inc.

0 votes, 0.00 avg. rating (0% score)
Categories: Breach Of Security, Identity Theft, Professional Liability

Tech Company Personal / Advertising Injury Coverages

The standard General Liability policy covers “personal injury” and “advertising injury” unless the insured is in the business of advertising, broadcasting, publishing, or telecasting. For this reason, there is no coverage for IT firms that are in the business of designing websites, determining content, providing content, or providing internet access.

Why do tech firms need coverage for “personal injury”? First of all “personal injury” coverage may be needed to protect a tech firm against an allegation of slander, libel, or oral or written publication that violates a person’s right of privacy. It is not too difficult to see how a tech firm could get sued under these circumstances.
… Read more →

0 votes, 0.00 avg. rating (0% score)
Categories: Cyber Liability, Errors & Ommissions, Personal / Advertising Injury, Professional Liability

Loss To Electronic Data Not Covered Under General Liability

Standard General Liability policies for businesses don’t adequately cover the liability risk of “property damage” to “electronic data”.

Most service or contracting businesses could cause property damage that results in loss of or damage to a third party’s electonic data that is housed on their computer system. This exposure is not limited to IT firms.
… Read more →

0 votes, 0.00 avg. rating (0% score)
Categories: General Liability, Professional Liability

Data Breaches Growing Rapidly: Tech Companies Uninsured

Over the past two and a half years, there have been over 225 million reported consumer data breaches. This year alone, there have been more than 30 million reported security breaches of consumer data. No one knows the actual numbers since it is suspected that most security breaches are unreported.

Most tech firms and regular businesses with exposure don’t have insurance to cover this exensive peril. Liability for the following categories of expenses are common in these breaches of security:

*Class action lawsuits

*Regulatory fines, fees, penalties

*Statutory notification expenses

Tech companies that collect confidential information or assist clients that do the same must make sure that their Professional Liability / Errors & Omissions policy is specially endorsed to respond to breach of security lawsuits. Non tech companies with exposure must make sure that their Cyber Liability policy does the same.

Source: S.H. Smith & Company, Inc. E Bulletin, 10-19-08

1 vote, 4.00 avg. rating (80% score)
Categories: Breach Of Security, Errors & Ommissions, Professional Liability