Aspen’s recently announced Privacy Control product brings a new coverage option for organizations concerned about their exposure to legal liability, mitigation costs, and negative customer relations arising out of a privacy breach. The new product takes an affirmative approach to avoiding loss, providing coverage for pre-claim loss control as well as liability coverage for resulting losses and expense reimbursement for response services.
Interestingly, the new policy also offers coverage for online media liability (more on that later), coverage that few carriers are integrating with their Cyber Risk policies.
Aspen makes a big point of offering a better, more responsive product that will cover certain costs that are (or should be) incurred once management has knowledge of a suspected privacy breach. We’re not so sure that this is really much different from Aspen’s competitors, but they are right that such coverage is important, and we are glad that they provide it.
Limits up to USD$1 million can be provided for these legal and forensic response actions, such as:
- Establishment of attorney-client privilege and (if appropriate) a litigation hold to preserve evidence
- Identification of potential violations and defenses
- Consulting by forensic experts
USD$250,000 may be provided for covered costs relating to:
- The determination of whether there is a the legal need to notify individuals as well as forensic costs to identify what data has been breached
- Notice fulfillment services
- Credit monitoring services
- Call center services
Retentions of USD$50,000 or more are typical.
Aspen also provides coverage for 3rd-party liability exposures typically covered under a Cyber Risk policy, including breaches of vendor systems.
In addition to the data security coverages, Aspen provides coverage for online media activity resulting in a media hazard, such as:
- Personal injury
- Plagiarism or misappropriation of ideas
- Infringement (including domain name infringement)
- Digital Millennium Copyright Act-related exposures
We’ll cover Aspen more completely in our Cyber Risk and Privacy Insurance Market Survey 2010, which will be released later in June.