Ironshore to Offer Monoline Network Security, Privacy Liability Coverage

October 13, 2010

IronPro, the professional liability division of Ironshore Inc. has introduced Enterprise PrivaProtector 9.0 to assist businesses in managing their network security and privacy risks.

In 2010, the Identity Theft Resource Center reported 533 privacy breaches involving over 13 million personal records. The consequence of a data breach can impact both the company and its directors and officers, resulting in both financial and reputational loss.

Enterprise PrivaProtector 9.0 is designed to help protect individual directors and officers by providing Side A excess directors’ and officers’ liability coverage arising from a network security or privacy wrongful act. The policy also covers the company’s privacy breach expenses and protects against the potential liabilities arising out of unauthorized access or use of an insured’s computer system, denial of service attacks and malicious code. The policy offers optional Internet media liability coverage along with first party coverage for digital asset loss, business interruption income loss and network extortion threats.

According to Tom Monaghan, senior vice president of IronPro, “In today’s business environment, every enterprise faces increased liability and regulatory scrutiny regarding adequate protection for non-public personal and confidential corporate data. A data breach can result in a significant expense for any business.”

At present 48 states, the District of Columbia, Puerto Rico and the Virgin Islands have enacted legislation requiring notification of security breaches involving personal information. The current regulatory environment is imposing more stringent reporting provisions creating more liability for companies and their directors and officers.

IronPro’s Enterprise PrivaProtecto is designed to help manage this exposure and fill the gaps of traditional insurance coverage. Insureds will have access to the eRisk Hub powered by NetDiligence which offers the following risk management resources:

  • Privacy Breach Coach who will create a privacy breach response plan;
  • Privacy Breach Response Guide showing privacy breach notification laws and requirements for all 50 states;
  • Computer Emergency Response Team (CERT) who can assist in network security and forensics;sample network security and privacy policy templates, including those for computer network security and network extortion threats;
  • contacts to network security, privacy, public relations and legal independent third party experts;
  • news, whitepapers and content from leading practitioners in risk management, network security, computer forensics, crisis management and legal counsel; and
  • information and technical resources that can assist in the prevention of network and privacy losses and support in the timely reporting and recovery if an incident occurs.

Source: Ironshore

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