Chartis Enhances Coverage for Network Security, Privacy Risks

August 18, 2010

Chartis is expanding Specialty Risk Protector, its professional liability and data network security insurance coverage developed by its Executive Liability division, to give customers access to additional protection for critical network security and privacy risks, greater flexibility in managing data breach events, and new tools to prevent losses.

Chartis insurers are now offering a variety of enhancements to Specialty Risk Protector, including:

  • Expanded coverage for business income or revenue losses, including those arising from accidental network security failures and unplanned computer system outages;
  • Express coverage for losses arising from cyber-terrorism;
  • Coverage for civil fines and penalties imposed by governmental agencies as a result of privacy and security breaches;
  • Assessments levied by credit card associations as a result of security or privacy breaches;
  • Express coverage for claims arising from breaches of confidential information considered “electronic-protected health information” under the Health Information Technology for Economic and Clinical Health Act (HITECH ACT);
  • Defense costs coverage for criminal proceedings brought against an insured as a result of a non-insured’s creation, distribution or publication of content in violation of the privacy rights of any other person, unless the insured is determined to have been involved in the wrongdoing; and
  • Options to purchase coverage for event management expenses (e.g., costs to notify and provide identity monitoring for individuals whose personal information is compromised) either on a “turnkey” basis, with a per-person limit and services provided by Chartis’ panel of vendors, or on an aggregate limit basis, with the insured involved in the service delivery and vendor selection.

Specialty Risk Protector policyholders can also receive complimentary access to the eRisk Hub risk management and loss prevention portal. The portal features information on security and privacy best practices; insights on the legal, risk and regulatory environment; and tools to support breach recovery planning.

The modular Specialty Risk Protector package enables companies to bundle multiple coverages in one policy. Coverage can include specialty errors and omissions liability, network security and privacy liability, event management, crisis management, network interruption, cyber extortion, media for publishers and broadcasters, media content liability, and employed lawyers professional liability.

Source: Chartis

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