Wheaton, Ill., March 7, 2012--A national property/casualty advisory organization and a leading equipment breakdown insurer are teaming up to develop an option for providing "data compromise" coverage for a commercial account.
The American Association of Insurance services (AAIS) and The Hartford Steam Boiler Inspection and Insurance Company (HSB), a part of Munich Re, will be developing the coverage as an endorsement option under the AAIS Businessowners Program (BOP) and in the Electronic Data Processing section of the AAIS Inland Marine Guide.
Representatives of HSB will speak about this initiative during the inland marine and commercial lines roundtable segments of the AAIS Main Event conference, April 15-17 in La Jolla, Calif.
"Data compromise" may occur when identifying information on individuals (such as Social Security numbers, account numbers, and more) typically maintained by a commercial entity is stolen or viewed by unauthorized third parties.
The data compromise coverage being developed by AAIS and HSB is a first-party coverage that reimburses, up to its own limits, expenses incurred when an insured entity experiences theft or accidental publication of personally identifying information that could be used to commit fraud or identity theft.
The coverage would be provided under its own limit, and does not extend to any financial losses the insured's clients may have incurred. Losses covered would include legal services to review the loss, the cost of notifying the affected individuals, and services provided to help affected individuals.
AAIS will develop and file the endorsement and corresponding manual rule under its BOP; an essentially equivalent option will be released under the Inland Marine Guide and filed where required.
HSB will be available as a reinsurer and can provide their partner insurers with assistance in underwriting, pricing, and claims-handling.
For information on affiliating with AAIS for use of its Businessowners or Inland Marine Guide programs, contact Rick Maka, director of marketing and strategic alliances, by our contact form or by calling 800-564-AAIS, ext. 222.