Professional Coverages

Anyone providing a professional service has the potential to be sued due to an error or omission. Professional liability insurance has become increasingly popular for technology companies. Anyone who collects and/or stores customer information should consider cyber/data liability. While anyone who disseminates content via print or cyberspace should explore media liability.

Errors and Omissions (E&O) / Professional Liability / Malpractice Insurance

Errors and Omissions coverage also known as Professional Liability or Malpractice Insurance depending on your profession protects against damages that you must pay because of an error, omission, or negligent act involving your work or products. A superior policy will provide “enterprise-wide” E&O protection against liability for nearly all of your company’s commercial activities — not just a narrow category of your defined operations. Professionals such as Attorneys, Physicians, Engineers, along with institutions such as Hospitals and Banks are all prime candidates for E&O coverage. Architects, Developers, and Contractors have big exposures to E&O lawsuits along with anyone offering a technology service or product.

Cyber/Data Liability

Cyber Security Liability insurance is a broad term that describes insurance protection purchased by companies operating in cyberspace or whose businesses store sensitive information on computer networks. A good cyber security liability policy will offer first party indemnification due to loss of digital assets, non-physical business interruption, cyber extortion, cyber terrorism, and security event costs. Coverage also includes third party coverage to cover lawsuits from outside parties due to data, network, and privacy breaches. A superior policy will contain the following:

• Coverage for damages to third parties caused by a breach of network security
• Coverage for loss resulting from administrative or operational mistakes – extends to acts of the employee, business process outsourcing (BPO) or outsourced IT provider
• Breach of Privacy coverage – includes damages resulting from alleged violations of HIPAA, state and federal privacy protection laws and regulations
• Coverage for expenses resulting from a breach of consumer protection laws such as the Fair Credit Reporting Act (FCRA), the California Consumer Credit Reporting Agencies Act (CCCRAA) and the European Union (EU) Data Protection Act
• Customer Notification Expenses Coverage – reimburses for costs to notify and provide 12 months of credit monitoring
• Coverage for acts of a rogue employee causing intentional damage to the insured’s computer network
• Public Relations Expenses coverage to repair insured’s reputation as a result of a data breach
• Customer Notification Expenses include legal expenses, credit monitoring expenses, postage and advertising costs
• Privacy Breach definition extends to acts of the insured and acts of a service provider acting on behalf of the insured
• Most favorable venue wording for punitive or exemplary damages
• Definition of claim includes demand for monetary and non-monetary damages or request to toll applicable statutes of limitations
• Cyber Extortion reimbursement costs for a range of perils including: a credible threat to introduce malicious code, pharm and phish customer systems or to corrupt, damage or destroy the insured’s computer system
• Electronic Media peril broadly defined to include infringement of domain name, copyright, trade name, slogan, service mark on internet or intranet site
• Interruption expenses include additional costs associated with rented/leased equipment, use of third party services, additional staff expenses or labor costs directly resulting from a covered Loss of Digital Assets claim
• Personally Identifiable Information (PII) broadly defined to include an individual’s name in combination with social security number, driver’s license number, account number, credit or debit card or any non-personal information as defined in any privacy regulation
• Knowledge provision includes President, Executive Officer, Chairman, Chief Information Officer, Chief Technology Officer, Risk Manager or General Counsel

Media Liability

Communications and Media Liability insurance provides coverage for the following wrongful acts committed by or on behalf of an insured in the conduct of your business:

• Unauthorized use of any advertising material, or any slogan, or title, of others in the advertising of the business, premises, products, services, work, or completed work of others
• Infringement of copyright, title, slogan, trademark, trade name, trade dress, service mark, or service name in your covered material
• Plagiarism or unauthorized use of a literary or artistic format, character, or performance in your covered material