Posted on 14 Jun 2013 by Neilson
News reports on the leak of confidential information from the NSA by a government contractor may cause Risk Managers to ask themselves a new question: What happens when your employee acts as a whistleblower to either the government or another company with whom you have a contract? Until now, the potential claim scenarios often involved an unintentional mistake or random human error.
A new report by insurance broker Lockton, authored by Dennis Love, Michal Gnatek, and Phil Mayes, entitled "Your Employee Leaks Confidential Information: Now What?" addresses areas of potential concern. It includes a review of the types of insurance policies that may be triggered by such a leak and the measures that risk managers can take to manage this unique risk.
A new risk that can now be addressed is the impact to your brand and reputation. "Innovative insurance carriers are collaborating with Lockton to provide policies to cover the loss of net profit (and extra expense) that is suffered following negative publicity. The triggers are flexible, tailored to each Insured, and agreed to in advance to provide contract certainty," Love said.
Lockton recommends companies work with their insurance broker to select the insurer who can meet their needs. There are many factors to consider and an experienced insurance professional can provide guidance throughout the process.