Updates inside the full report include the
following.
- 101 pages with 19 different kinds of charts
comparing 14 of the most prominent insurers writing technology
errors and omissions (E&O) insurance
- Estimates on global market size and current rate
trends
- The seven tech E&O business classes that are
accounting for the most direct written premium
- Predictions from ISO Marketstance as to how future tech E&O
premium growth will compare with other excess and surplus (E&S)
lines
- A look at available capacity and retention
levels
- An update on the evolution of data privacy
coverage—both for privacy breach of the insured's
own data AND privacy breach of client data
- A look at how media liability coverage is finding
its way into technology E&O insurance
- How subcontractor coverage and the
definition of "products" and
"services" can impact coverage
- A look at how "hammer clauses" are most
commonly being utilized
- An analysis of exclusions that are
particularly applicable to technology E&O,
including: cost estimates exceeded, performance delay, security
breach or unauthorized access, intellectual property, and public key
infrastructure
- A look at the types of risk management services that
are becoming increasingly prevalent in technology E&O policies
- How ransomware is stressing this line of
coverage
Why The Betterley Report?
Agents and
Brokers—Sell more and grow revenue by pinpointing errors in
competitors' policies/proposals.
Risk Managers and Insurance Buyers—Identify, eliminate, or
avoid coverage gaps with coverage comparison charts.
Underwriters—Research competitors with quick policy
comparisons.
Attorneys—Keep up with year-to-year trends in policy form
development.
Consultants—Identify markets and match them up to your
clients' needs.
Imagine that you or your client is tasked with
handling and storing the data of a large, multinational company. Over the
course of months, a backdoor into the data storage software is taken advantage
of by hackers, and almost all of the records are compromised. By the time the
vulnerability is discovered, the situation is out of control, and a barrage of
lawsuits are soon filed against your (or your client's) company for errors
in the safeguarding of the data in question. Along with the reputational damage
that the headlines bring, costs begin to rack up in the form of defense
expenses and, eventually, costly settlements.
- "What are the best insurance products available to
protect against this circumstance?"
- "How can financial losses be
minimized?"
- "How could my company (or my client) have been better
prepared for this liability?"
Depending on whether you are the risk manager, the agent or broker, the
consultant, or any other role, these are likely the questions you are asking
yourself. In today's data-focused environment, companies offering
technological services of all sorts are faced with the types of technology
E&O exposures alluded to in the scenario above.
The "Technology Errors & Omissions Market Survey" edition of
The Betterley Report compares and contrasts the options available in
the insurance marketplace to address scenarios like this and sheds light on the
specific knowledge that can help any risk management and insurance professional
better address technology E&O exposures.
Following a general overview of the state of the technology E&O
insurance market, the report dives into the trademark feature offered in each
edition of The Betterley Report: Incomparably detailed charts
comparing the leading technology E&O insurers. These comparison
charts allow readers to see how each of the insurers stacks up with the others
in terms of the following.
19 types of insurer comparison charts available in full
report:
These comparison charts allow readers to see how each of the insurers
stacks up with the others in terms of:
- Contact and Product Information
- Target Markets
- Limits and Sublimits
- Deductibles, Distribution Channel, and Commissions
- Privacy Breach of Their Own Data
- Privacy Breach of Client Data
- Media Liability
- Business Interruption and System Failure
- Theft (First-Party Coverage)
- Policy Type, Who Is Insured, Subcontractors, Definition of Claim
- Definition of Products and Services
- Definition of Damages
- Other Policy Definitions
- Definition of Defense Expenses
- Claims Reporting, ERP, Selection of Counsel, Consent To Settle
- Prior Acts
- Coverage Territory
- Exclusions
- Risk Management Services and Additional Cost
Sample Market Information from the Full Report
Below is a small sample of the information that is available for each of the
insurers via the 19 different types of charts included in the full report.
| Target
Markets |
| Carrier |
Target Markets/Size of
Insured |
Target Markets |
Prohibited
Insureds |
Does Company Write
Startups? |
| Tokio Marine HCC PLG |
Under $100 million revenue |
Including but not limited to Tech Service Providers: Technology and
Communications Systems Consulting, Design, Implementation, Support;
Data Storage; Network Systems Management; Website Design; Project
Management and Outsourcing; Hardware Resale and Installation; Software
Development, Maintenance; ASP Services, Web Hosting |
Cryptocurrency exchanges, payment processors, gambling, music
licensing
|
Yes |
Coverage
Extensions and (sub) Limits Available for Tech E&O Insureds—
Privacy Breach of Their Own Data |
| Carrier |
Liability |
Response Cost |
Fines/Penalties |
| Hiscox |
Up to $10 million available for Cyber "Loss" with the
purchase of the Cyber Liability Coverage Part. Contractual liability
and Contractual indemnity coverage, including for Payment Card Industry
(PCI) fines, card reissuance costs, and fraudulent charges are
included. |
Breach Response Expenses coverage includes reasonable and necessary
costs that are extraordinary and beyond the named insured’s normal
expenditures. Subject to prior written consent and incurred and paid by
the Named Insured within 12 months of the insured’s discovery of the
Security Breach for the following: (1) insured’s public relations
activities that are solely intended to mitigate a material impact to
the named insured arising out of a Security Breach which has become
substantially publicized through the news media; (2) costs, including
forensic and investigative expenses, billed to the named insured by
others the insured engages to determine the origin, extent and duration
of a Security Breach. (3) costs, including legal fees, for the insured
to notify Persons of a breach of the privacy of their personally
identifiable information that is in the insured’s care, custody or
control or the care of Trusted Party; (4) the Named Insured’s costs to
provide up to 2 years of credit monitoring services, including fraud
alerts, to affected persons because of a Security Breach; (5) Named
Insured’s costs for identity restoration and credit repair services for
identity or credit injury to a Person caused by a Security Breach; (6)
Named Insured’s costs for a call center to manage Security Breach
inquires; and (7) the Named Insured’s costs for voluntary payment of
restitution to a Person who lost money due to Security Breach when
payment made to prevent a Claim from being made.
Cyber Extortion Expenses and Content Restoration Expenses coverage also
built into base policy form.
Full First-Party limit and policy aggregate limit applies. |
Definition of damages includes carve-back to cover privacy
regulatory-imposed civil fines or penalties; Full Third-Party Limit and
Policy Aggregate Limit Applies.
Coverage for PCI-DSS/PA-DSS fines built into policy form; First-Party
Limit and Policy Aggregate Limit Applies. |
| Definition
of Products and Services |
| Carrier |
Products and/or
Services Listed on Declarations Page |
Products and/or
Services Defined in Policy |
Available
Endorsements |
| CFC Underwriting |
A bespoke definition of activities is included within the
declarations page. |
"Technology activities" means the supply by you or on
your behalf of technology products or services, including but not
limited to software development, software installation and maintenance,
hardware design, hardware installation and maintenance, data
processing, internet services, data and application hosting, computer
systems analysis, consulting, training, programming, systems
integration, IT support and network management, and as more fully
described in the Declarations page.
However, in respect of INSURING CLAUSE 1 (SECTION D only), technology
activities does not include products. |
A wide range of standard endorsements are available on top of
individually tailored endorsements in order to provide maximum
flexibility. |
Your Objective Source: A Renowned Industry Expert
Richard S. Betterley, LIA, is the president of Betterley Risk Consultants
(BRC), an independent insurance and alternative risk management consulting
firm. BRC, founded in 1932, provides independent advice and counsel on matters
important to the commercial property and casualty insurance industry and its
customers, alternatives to traditional insurance, and related services
throughout the United States. It does not sell insurance or related
services.
Mr. Betterley is a frequent speaker, author, and expert witness on specialty
insurance products and related services. He is a member of the Professional
Liability Underwriting Society and joined the firm in 1975.
Mr. Betterley created The Betterley Report in 1994 to be the
objective source of information about specialty insurance products. Now
published six times annually, The Betterley Report is known for its
in-depth coverage of management liability, cyber-risk, technology, intellectual
property, and media insurance products.
Next Issue: April 2021
Intellectual Property and Media Liability Market Survey
The Betterley Report, your independent guide to specialty insurance
products, is a series of six comprehensive reports published annually by
Betterley Risk Consultants and distributed by International Risk Management
Institute, Inc. (IRMI).
The Betterley Report may be accessed by subscribers on IRMI Online
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Betterley Risk Consultants is an independent insurance and
alternative risk management consulting firm. Founded in 1932, it provides
independent advice and counsel throughout the United States. It does not sell
insurance nor provide insurance-related services.
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Phone (774) 262–3460
email: [email protected]
The editor has attempted to ensure that the information in each issue is
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should be consulted before any action or decision based on this matter is
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ISSN 1089–0513