ACE USA has introduced a new option for ACE privacy protection policyholders through enhancements to its data breach team endorsement. The new data breach fund sidecar endorsement eliminates tiered sub-limits and provides a single data breach fund limit, one that falls outside the policy’s liability limits for all data breach expenses. The ACE data breach team is a panel of independent legal, computer forensic, notification, call center, crisis communications, fraud consultation, credit monitoring, and identity restoration firms. Policyholders can now obtain both the ACE Data Breach Team and a single data breach expense limit, separate from the policy’s liability limit.
The ACE Data Breach Team, combined with one of the data breach team endorsement options, bridges the gap between risk transfer and purchased loss control, creating a risk management program for privacy, data breach, and network security risk.
Data breach team endorsement enhancements include:
- Coverage for regulatory communications, including:
- Payment for legal services to communicate with a regulator before a formal investigation
- Coverage for the data breach coach or another law firm on the data breach team panel
- Self-insured retention for a regulatory proceeding, which is eroded by regulatory communications coverage
- Forensics coverage, which now responds to any failure to protect personal information, and is no longer limited to network security failures
The new data breach fund sidecar endorsement benefits include:
- All of the benefits already provided by the data breach team endorsement
- Expanded coverage for insureds with less than $1 billion in annual sales revenue
- Data breach fund sidecar limit outside of the standard policy limits
- Sidecar limit intact, even when standard policy limits have been exhausted
- Tiered sub-limits removed, providing a single limit for all data breach expenses, including expenses incurred to retain services for: the data breach coach, forensics, complying with privacy regulations, regulatory communications, legal services, notification services (statutory and voluntary), call center services, public relations, credit monitoring, identity monitoring, and fraud consultation
- Sidecar limit offered at 50 percent of the privacy liability limit on a standard basis (customers are able to purchase lower limits if requested)
- No retention for data breach coach expenses
- Simplified structure to allow brokers and clients to build excess programs above ACE limits
ACE’s data breach fund sidecar endorsement offers expanded coverage and services to help small and mid-sized organizations mitigate and manage the rising risk and expense of data breaches, creating a comprehensive risk management program for privacy, data breach, and network security risk.
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