Archive for Computer Risks
Computer Software Designers E&O
This insurance covers errors in programs or in systems designed by computer software designers and consultants. In many cases, computer consultants’ errors and omissions coverage is written as part of a package arranged for computer firms.
This is the most rapidly changing liability area today. Commercial and personal lines carriers restrict both first-party and third-party coverage related to online activities. As a result, separate cyber liability coverage forms and endorsements are necessary to cover both. Hackers infiltrate a companyâ€™s computer system and steal valuable third-party information, such as social security numbers, credit card numbers, and health information. The liability to the third party can be covered as well as the expenses to mitigate losses such as credit monitoring and assistance in restoring stolen identities. Extortion coverage may be provided to assist when stolen information is held hostage or computers frozen. The coverage continues to change and evolve.
Document Destruction Professional Liability
Businesses are (or should be) concerned with privacy and confidentiality issues that relate to their customers’ information. Document destruction businesses can be hired to destroy such confidential customer information. Document destruction professionals are responsible for maintaining and protecting the information’s confidentiality and ensuring that the destruction is complete. Professional liability insurance is available that responds to claims that allege improper handling and destruction of the material. Claims may be for alleged unauthorized access to or theft of sensitive documents; intentional acts by an employee; negotiable instruments falling into the wrong hands; identity theft stemming from information on sensitive documents; violation of privacy; negative publicity from the release of sensitive documents; and improper handling of documents required in a court hearing.
Electronic Data Processing Equipment
This coverage insures direct physical loss or damage to electronic data processing system equipment and media including the introduction of viruses and damage by hackers. It also covers the extra expenses incurred to continue operations after the equipment or media is damaged. Business income coverage if the insured’s operations are partially or completely suspended due to damage to data processing equipment or media may also be provided. These coverages are usually written on an all risks type or special causes of loss basis. Most companies offer limited breakdown coverage.
Electronic Data Processors E&O
This coverage protects the insured that performs data processing service for others against claims that arise out of a negligent act, error, or omission in its handling and processing of electronic data.
Identity Theft Liability
Identity theft liability is an evolving coverage. The most basic form covers liability imposed on a business because it failed to adequately protect certain vital information that its customers supplied. This information is such that its theft can allow the customers’ identity to be stolen. Many carriers are expanding beyond this basic coverage to provide loss control assistance to prevent such losses and intense case management activities following a security breach in an attempt to lessen the impact of any loss.
Internet liability is the most rapidly changing area of liability exposure today. The growth in the number of persons who use the Internet regularly has caused most businesses to promote and market their products and services online. These companies have home pages and many communicate with others via email, chat lines, blogs, social media, and more. Liability coverages and exclusions that apply to advertising injury, libel, slander, infringement of copyright, and trademark are being revised to reflect the changing conditions of online communication. A few insurers offer a package of coverages designed to protect businesses that provide online services to their customers and subscribers.