Privacy violations are defined many ways by different insurance carriers. It can be summed up as a loss arising from a breach of privacy under defined privacy regulations, including GLB, HIPAA, and state privacy protection laws.
Most traditional network risk policies do not address the scope of coverage needed for privacy and security risks following the regulatory requirements and typically exclude coverage for regulatory complaints.
Proving an illustrative story: firm was charged with violating the Gramm-Leach-Bliley Safeguards Rule regarding reasonable protections for customers’ sensitive personal and financial information.
It is possible that a properly designed, comprehensive, network risk program could provide coverage for third party claim, regulatory fines and penalties.
This is an illustrative example only. Each claim would be subject to the full terms and conditions of the actual policies in place.
Contact a TechAssure professional to discuss your exposures and potential coverage options.