Updates inside the full report include the
following.
- 107 pages with 17 different kinds of charts
comparing 21 of the most prominent insurers writing technology
errors and omissions (E&O) insurance
- An update on how a cultural criticism of social
media could be a concern
- 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 how war exclusions can impact cyber-related exposures
- 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
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.
17 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
- Policy Type and Definition of Insured
- 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 17 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? |
| RLI |
Focus on firms with less than $50 million in revenue |
Monoline Tech Professional Liability or Tech Professional Liability
as part of Package. Information Technology including
software developers, system integrators, IT consultants, IT staffing,
ISP/ASP, website design and data processors. |
Adult content and online gambling |
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." Contractual
liability and Contractual indemnity coverage, including for Payment
Card Industry (PCI) fines, card reissuance costs, and fraudulent
charges are included. |
Up to $10 million available in breach costs under Cyber “Loss”,
including legal costs, computer forensic costs, notification costs,
call center costs, identity protection services, crisis management and
public relations costs. |
Up to $10 million available under Cyber "Loss," which
includes claims expenses and penalties because of a regulatory
proceeding. |
| Definition
of Products and Services |
| Carrier |
Products and/or
Services Listed on Declarations Page |
Products and/or
Services Defined in Policy |
Available
Endorsements |
| Arch |
No |
"Technology Services" means information
technology services performed by any Insured for others for a fee,
including but not limited to constructing or maintaining a website, the
integration of electronic information and business processes within a
website, computer consulting, systems analysis, installation,
programming, data processing, system integration, software development
and design, disaster recovery, record retrieval, management and repair
or maintenance of computer products, networks or systems and education
and training services related to the above. Technology Services shall
also include the performance of the Insured’s Technology Products or
the failure of the Insured’s Technology Products to perform the
function or serve the purpose intended. |
Policy may be endorsed based upon specific needs and subject to
underwriting. |
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 insurable risk,
coverage, alternatives to traditional insurance, and related services to
corporations, educational institutions, and other organizations 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. Mr. Betterley began his role with BRC 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 2019
Intellectual Property and Media Liability Market Survey
The Betterley Report is distributed by International Risk
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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 to corporations, educational institutions, and other organizations
throughout the United States. It does not sell insurance nor provide
insurance-related services.
Betterley Risk Consultants, Inc.
235 Forest Lake Rd. • Friendship, Maine 04547
Phone (774) 262–3460
email: [email protected]
The editor has attempted to ensure that the information in each issue is
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and regulatory matters are those of the editor and others; professional counsel
should be consulted before any action or decision based on this matter is
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