ACE DigiTech^®: Digital Technology and Professional Liability Insurance

Technology companies operate in a high-risk business arena where potential service, product and network risk exposures continuously evolve. Consultants, software designers, data processors and manufacturers face litigation from dissatisfied customers. The loss or theft of sensitive customer data is a recurring risk for e-commerce companies and can result in reputational damage, extortion threats, legal action, and regulatory scrutiny. New identity theft legislation ups the ante, mandating that companies that lose sensitive information “go public” by contacting individuals that may potentially be affected. ACE DigiTech^® offers comprehensive professional liability coverage for your technology products and services, as well as state-of-the-art network security and privacy liability protection for the sensitive data hosted on your systems.

Benefits:

• Affirmative 100 percent Allocation of Defense provision if at least one covered claim is asserted
• Privacy coverage includes:
  • Personal information in any format
  • Network, as well as non-network security breaches
  • Customer and employee information
• Policy covers wrongful acts of Insured and its service providers
• Free access to eRisk Hub^®, a web-based loss prevention resource containing information and technical resources to help policyholders manage their privacy and network risk
• Data breach expenses include voluntary notification and expenses to comply with the consumer notification provisions of the applicable jurisdiction that most favors coverage
• No retention, coinsurance, prior written approval, or post-discovery time restrictions for Data Breach Fund (voluntary notification subject to prior written approval)
• Privacy Regulations coverage includes the latest regulations including the Identity Theft Red Flags Rule, HITECH Act and Massachusetts 201 CMR 17
• Definition of damages includes regulatory fines (where permitted by law), a consumer redress fund awarded from a regulatory proceeding, and punitive and exemplary damages (most favorable jurisdiction language)
• Coverage carve backs on applicable exclusions for Regulatory Proceeding, Severability and Defense
• Specified officers, directors, principals, and partners for Notice and Representations
• Bodily injury exclusion includes a carve back for mental injury, mental anguish, mental tension, emotional distress, pain and suffering or shock resulting from Privacy Liability

Coverage:

• Technology and Internet Errors and Omissions Liability
  • Covers acts, errors or omissions in the provision of technology services or the sale of technology products
• Electronic Media Activities Liability
  • Covers infringement of copyright or trademark, invasion of privacy, libel, slander, plagiarism, or negligence arising out of the electronic publishing, dissemination, releasing, gathering, transmission, production, webcasting, or other distribution of electronic content on the Internet.
• Network Security Liability
  • Covers liability of the organization arising out of the failure of network security, including unauthorized access or unauthorized use of corporate systems, a denial of service attack, or transmission of malicious code.
  • Provides coverage for regulatory proceedings brought by a government agency alleging the violation of any state, federal, or foreign identity theft or privacy protection legislation.
• Privacy Liability
  • Covers loss arising out of the organization’s failure to protect sensitive personal or corporate information in any format.
• Data Breach Fund
  • Covers expenses to retain a computer forensics firm to determine the scope of a breach, to comply with privacy regulations, to notify and provide credit monitoring services to affected individuals, and to obtain legal, public relations or crisis management services to restore the company’s reputation.
• Network Extortion Threat
  • Covers extortion monies and associated expenses arising out of a criminal threat to release sensitive information or bring down a network.
• Miscellaneous Professional Services Liability
  • Covers acts, errors or omissions in the provision of services beyond technology services.