Posted on 31 Aug 09
As the number of incidents involving unauthorized access to confidential information grows, organizations today are placing a greater emphasis on data protection and insuring against the potential litigation that can arise if information security is compromised. To help protect companies and organizations from liability claims associated with increased network and information security threats, Travelers (NYSE: TRV) Bond & Financial Products is now offering Network and Information Security Offense coverage endorsements on its Wrap+® policies. These endorsements are available for eligible policyholders in targeted private and non-profit industry groups.
“Companies today are paying greater attention to not only protecting the information they gather and store, but also the liabilities created should that information be compromised. The new Travelers Wrap+ endorsements allow coverage to be added directly to existing management and professional liability coverages,” said Tim Francis, Network & Information Liability Product Manager for Bond & Financial Products.
Travelers’ new Network and Information Security Offense coverages apply to claims for failing to prevent access to confidential information regardless of whether the information is accessed due to systems hacking, lost mobile email devices and laptops, or “dumpster diving” and “phishing” schemes. The endorsements are available for policyholders of Travelers Wrap+ Directors and Officers (D&O), Miscellaneous Professional Liability (MPL), and Employment Practices Liability (EPL) coverages in eligible industry classes.
The D&O and MPL endorsements add coverage for claims alleging a failure to prevent unauthorized access to private and confidential information. Coverage also extends to claims arising out of the transmission of computer viruses, and failing to provide notification of information security breaches. In addition, Travelers’ EPL endorsements are tailored to address information security issues unique to the employer/employee relationship and claims that may result from unauthorized access to private employment information.
As an added value for D&O and MPL policyholders eligible for the new endorsements, Travelers is also offering a Crisis Event Management Expenses coverage which provides customers expense reimbursement for consulting services provided by a public relations firm in response to a crisis event. With this endorsement, these policyholders will receive an additional coverage limit of $25,000 for crisis management event expenses.
Travelers Wrap+ is available for privately owned and non-profit organizations and provides several management liability coverage options. Customers can select one or more of the available coverages on a single comprehensive policy platform. Available coverages include D&O, EPL, Fiduciary Liability, MPL, Crime, Kidnap and Ransom, and Identity Fraud Expense Reimbursement coverage.
The new Network and Information Security Offense endorsements with added Crisis Management Event Expenses coverage are now available in 48 states and will be available countrywide pending state approvals.
The Travelers Companies, Inc. is a leading property casualty insurer selling primarily through independent agents and brokers. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. The company’s diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings.