Chartis Enhances Network Security Policy

June 25, 2012

The Chartis insurers have added enhancements to its network security and privacy insurance products, recently rebranded as CyberEdge, to better address evolving risk trends, including:

  • coverage for confidential information protected under foreign privacy laws and breach notification laws;
  • expansion of the definition of a privacy event to include the failure to comply with an organization’s privacy policy or the wrongful collection of confidential information;
  • inclusion of a “goodwill option” that provides policyholders with the option to offer a credit, coupon or rebate for future purchases in lieu of credit/identity monitoring in the event of a data breach; and
  • updated definition of a computer system to include coverage for an organization’s use of cloud computing resources.

In addition to the coverage available for litigation stemming from a network security or privacy breach, and costs associated with managing and addressing a privacy event, security failure, network interruption or cyber extortion threat, CyberEdge provides insureds with services aimed at preventing loss. These include two complimentary hours of risk consultation with a leading privacy attorney and/or an IT security assessment expert. Insureds also receive access to the eRisk Hub risk management and loss prevention portal that features information on security and privacy best practices; insights on the legal, risk and regulatory environment; and tools to support breach recovery planning.

“As the security and privacy landscape continues to evolve, trending threats are emerging, such as the zip code-related claims under California’s Song-Beverly Act. Concerned with the potential income loss when a cloud computing vendor has a system failure, insureds need their policies to outpace these complex exposures,” said John Gambale, head of Professional Liability for Chartis U.S. and Canada.

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