1 DATA BREACH, NETWORK SECURITY, CYBER LIABILITY, PRIVACY PROTECTION: ARE YOU INSURED? February 3, 2012 Steve Brown, Agency Manager West Virginia Medical Insurance Agency
2 How many in the audience today will answer Yes to this Question: Does My Medical Practice have Insurance Coverage for Data Breach, Network Security, Cyber Liability, Privacy Protection? YES NO
3 Where to Obtain Cyber Liability Insurance A. From Medical Professional Liability Insurance Carrier B. From Business Owners Carrier (BOP) C. From Stand Alone Markets
4 A. From MPL Insurance Carrier Most medical professional liability insurers in West Virginia have by endorsement added a premium free coverage to their MPL policy that provides: (1) e-md TM Network Security and Privacy: coverage for legal obligations of the Insured to pay for claim(s) resulting from a Network Security Wrongful Act or Privacy Wrongful Act. (2) Regulatory Fines and Penalties Insurance: coverage to reimburse the Insured for regulatory fines and penalties the Insured becomes legally obligated to pay. (3) Patient Notification on Credit Monitoring Costs Insurance: coverage to pay notification and credit monitoring costs incurred by the Insured, with the written consent of the Insurer, by reason of a claim(s) for Privacy Wrongful Act. (4) Data Recovery Costs Insurance: coverage to pay data recovery costs incurred by the Insured, with the written consent of the Insurer, as the result of a claim for a Data Interference Act. These coverages are generally free of charge to the Insured.
5 NOTE: WVMIC offers the highest underlying limit ($250,000) of cyber liability coverage, and consequently, offers the greatest discount on the purchase of higher limits (limits above $250,000) Also, WVMIC additionally provides Broad Form Administrative Endorsement, also at no charge, which provides investigative cost coverage for such things as RAC audits.
6 Names of Coverage Endorsements: WVMIC: Privacy Protection and Network Security Endorsement ProAssurance: Limited Network Related Coverage Endorsement Medicus: Medicus Gold Advantage Endorsement
8 Coverage Limits: Coverage WVMIC ProAssurance Medicus e-med Net. S&P $100,000 *1 $50,000 $100,000 Reg. Fines & Penalties $100,000 *1 $50,000 $100,000 Patient Notif & Credit Monitoring $100,000 *1 $50,000 $100,000 Data Recovery Costs $100,000 *1 $50,000 $100,000 Aggregate Limit $100,000 *1 $50,000 $100,000 *1 Effective with renewal in 2012, this limit ($100,000) will increase to $250,000 Higher limits available.
10 B: From Business Owners (BOP) Carrier As the need for Cyber Liability Insurance expands, other carriers (non-medical professional liability carriers) with a desire to provide coverage, specifically designed for Medical Practices will add this benefit.
12 Examples: The Hartford s Data Breach Coverage Response Expense Coverage Provided: First Party Response Expenses for: Legal & Forensic Services Notification Expenses Crisis Management/Public Relations Third Party Defense & Liability: Civil Awards Settlements Judgements that an Insured is legally obligated to pay Offered as optional coverage through The Hartford s Spectrum (Business Owners Policy) Limits Available: $10,000; $25,000; $50,000; $100,000 with various sublimits.
13 C. From Stand Alone Carrier Stand Alone essentially meaning a carrier who is providing only one coverage. Scenario: If you do not have cyber liability insurance as part of your medical professional liability policy or your business owners policy, you may want to purchase it a stand alone market may be available to offer you this benefit. Examples: NAS Insurance Services (will also offer limits in excess of WVMIC/ProAssurance/Medicus) HISCOX Specialty Hartford Financial Possible Target Markets: Physicians with MPL Coverage in the Excess/Surplus Lines Market (companies not licensed in WV) Physicians purchasing MPL policies from RRGs (Risk Retention Groups)
14 e-md Policy Highlights Limits of Liability up to $10,000,000/$10,000,000 Minimum Deductible of $1,000 Minimum Premium of $990 Large Breach Response Limits with Breach Response Costs Outside of the limits available Full Prior Acts Available Broad Coverage for date that is stored with a third party including, but not limited to Outsourcers and Independent Contractors Acts committed by rogue employees are covered, as well as privacy claims from employees Network Asset Protection including Business Interruption includes adminitrative and operational mistakes policy trigger as well as cyber crimes Property Damage exclusion does not include electronic data Final Adjudication language for Defense for allegations of fraud or intentional wrongdoing Coverage continues through bankruptcy Commercial and Corporate confidential information is covered Multimedia Coverage includes liability assumed under contract Worldwide coverage claims can be brought outside of the US Extended Reporting Period is available up to 3 years, but additional coverage may be available upon request
NEW ZEALAND PSYCHOLOGICAL SOCIETY MEMBERS INSURANCE COVER As the insurance brokers to the NZ Psychological Society, Rothbury-Wilkinson Insurance Brokers Ltd have arranged an insurance policy designed to
Memorial Hermann Employer Occupational Accident Program Houston, Texas Memorial Hermann Health Solutions, Inc. Employer Occupational Accident Program Insurance underwritten by ACE American Insurance Company
Insurance basics for nonprofit organizations Updated: July 2012 This document is intended as general and abbreviated guidance for nonprofit organizations. Because every organization s insurance needs are
CYBER RISK SECURITY, NETWORK & PRIVACY CYBER SECURITY, NETWORK & PRIVACY In the ever-evolving technological landscape in which we live, our lives are dominated by technology. The development and widespread
Network Security & Privacy Risks in the Health Care Industry May 2012 Aon Broking - Professional Risk Solutions 2012 Aon plc Brief Description: Conditions are ripe for health care organizations to fall
Trends in Fiduciary Liability Insurance: What New Coverages Does Your Employee Benefit Plan Need? by Daniel Aronowitz The primary purpose of a fiduciary liability insurance policy is to protect against
Liability Insurance Guidelines For Water Restoration and Mold Contractors April 2013 Disclaimer: The following is a draft of suggested language for incorporation into construction insurance specifications.
Minnesota Society for Healthcare Risk Management September 22, 2011 Cyber and Privacy Risk What Are the Trends? Is Insurance the Answer? Melissa Krasnow, Partner, Dorsey & Whitney, and Certified Information
INTERGOVERNMENTAL RISK MANAGEMENT AGENCY CERTIFICATE OF INSURANCE: WHAT YOU SHOULD KNOW PURPOSE: To assist individuals with reviewing and evaluation a Certificate of Insurance provided by outside entities
Gold Policy Report Claims To: Alliance United Insurance Company P.O. Box 6042 Camarillo, CA 93011-6042 Phone (800) 508-5833 Fraud Warning Pursuant to California Insurance Code Section 1879.2, you are hereby
Adopting Electronic Medical Records: What Do the New Federal Incentives Mean to Your Individual Physician Practice? U John M. Neclerio, Esq.,* Kathleen Cheney, Esq., C. Mitchell Goldman, Esq., and Lisa
Insurance Bulletin bulletin #4 Contractor s Insurance Coverage Checklist CNA and the PLANET Safety and Risk Management Council are proud to provide you with this information. We trust that you will find
The Labor Commission of Utah Division of Industrial Accidents Employers Guide to Workers Compensation Revised: August 2008 TABLE OF CONTENTS Who Should Be Covered... 1 Independent Contractors/Subcontractors...
RYERSON UNIVERSITY INSURANCE TOPICS Vendors Coverage/Policy Summaries Certificates of Insurance Liability Waivers Reporting Stolen or Damaged University Property Reporting On Campus Accidents Contract/Agreement
OneAmerica HIGHLIGHTS OF THE ERRORS AND OMISSIONS PROFESSIONAL LIABILITY POLICY This is a voluntary program for the Agents of: American United Life Insurance Company The State Life Insurance Company Pioneer
Glossary of Commercial Insurance Terms Commercial insurance is divided into two main categories: property insurance and casualty insurance. Property insurance provides coverage for property that is stolen,
NEW YORK LAWYERS PROFESSIONAL LIABILITY POLICY THIS POLICY APPLIES ONLY TO ANY CLAIM FIRST MADE AGAINST THE INSURED DURING THE POLICY PERIOD. CLAIMS MUST BE REPORTED TO THE COMPANY DURING THE POLICY PERIOD,
Insurance Operations Claim Procedures and the Claim Adjustment Process Claims adjusting is the process of determining coverage, legal liability, and settling a claim. The claim function exists to fulfill
Risk Transfer: A Strategy to Help Protect Your Business Risk Control Businesses rely on crucial relationships with contractors, subcontractors, vendors and consumers. In these relationships, agreements
IMPORTANT NOTE: THIS IS CLAIMS MADE AND REPORTED COVERAGE. PLEASE READ THIS POLICY CAREFULLY. THIS POLICY IS WRITTEN ON A CLAIMS MADE AND REPORTED BASIS. TO BE COVERED, A CLAIM MUST BE FIRST MADE AGAINST
U n i v e r s i t y R i s k M a n a g e m e n t & I n s u r a n c e A s s o c i a t i o n U R M I A W h i t e P a p e r Third-Party Contract Insurance Guidelines October 2009 John P. McLaughlin Managing
IES NTUC Income Professional Indemnity Insurance Scheme (Part 1 - Engineering Consultants Scheme) Frequently Asked Questions SECTIONS A B C D E F G H ABOUT THE SCHEME AND THE PARTIES INVOLVED THE POLICY
Westchester Fire Insurance Company ACE DigiTech SM Digital Technology & Professional Liability Small Business Application NOTICE The Policy for which you are applying is written on a claims-made and reported
CONSUMER S GUIDE TO AUTO INSURANCE The Colorado Division of Insurance prepares this booklet to assist you in shopping for auto insurance and to help you understand your Personal Auto Policy. When shopping
Private Health Insurance Code of Conduct July 2014: Version 5 CONTENTS PART A: GENERAL 1 1. INTRODUCTION 1 1.1 Introduction 1 1.2 Compliance 1 2. OUR COMMITMENT UNDER THE CODE 2 3. PRIVATE HEALTH INSURANCE
SECURITY, CYBER AND NETWORK INSURANCE SECURING YOUR FUTURE Businesses today rely heavily on computer networks. Using computers, and logging on to public and private networks has become second nature to
Data Privacy, Security, and Risk Management in the Cloud Diana S. Hare, Associate General Counsel and Chief Privacy Counsel, Drexel University David W. Opderbeck, Counsel, Gibbons P.C. Robin Rosenberg,