CyberLiability Plus™ Media/Professional Insurance Coverage Highlights Sheet

Source: sadlerco.com - CyberLiability Plus™ Media/Professional Insurance Coverage Highlights Sheet
Author: Jim Ferguson

Ever-Changing Risk Demands Focused Expertise

Media/Professional Insurance’s CyberLiability PlusTM policy addresses the rapidly evolving exposures in the world of cyber-risk. The policy is designed for any company providing Internet-related services or using the Internet as part of its business activities.

Coverage for dissemination of content and for errors and omissions in services are combined into one policy form. The program is backed by the solid claims-paying ability of the AXIS U.S. Insurance companies, rated A (Excellent) XV by A.M. Best.

Coverage Highlights

• Definition of “Cyberspace Activities” carefully crafted for each account


• Coverage for both distribution of content and errors and omissions in services (both on- and off-line)

• Protects innocent insureds from intentional unauthorized access or other wrongful conduct of “rogue” employees


• Coverage for punitive damages (where allowed by law)


• Subsidiary coverage (including newly created or acquired entities)


• Allegation of intentional wrongful conduct covered until final adjudication


• Worldwide coverage


• Up to $10,000,000 policy limit capacity, primary or excess


• $2,500 minimum premium for a limit of $1,000,000


• $2,500 minimum deductible

Covered claims include:

• Libel/Slander


• Invasion of privacy


• Infliction of emotional distress


• Copyright infringement


• Trademark infringement


• Unauthorized access by third parties


• Accidental introduction of viruses or malicious code in data or systems


• Errors and omissions in services

Sample of Classes Insured

• Application Service Providers


• Bulletin Board, Chat Room, Forum and News Group Hosts


• Content Providers


• E-Brochures/E-Catalogs


• E-Business Consultants


• Electronic Commerce Risks


• Interactive Electronic Environments


• Internet/Digital Media


• Internet Service Providers


• Network Developers, Managers and Consultants


• On-Line Marketing


• On-Line Software Developers


• Search Engine Portals


• Web Hosts and Administrators


• Web Site Developers, Designers and Consultants


• Web Site Owners

Availability

Available in all 50 states and D.C. on a surplus lines basis, except NJ (admitted). Claims Management

M/PI’s industry-leading cyber claims expertise includes:

• Dedicated in-house claims attorneys with cyber law expertise


• A network of top technology and intellectual property law firms


• Risk management and loss control programs available

Claims Examples

The claims examples below illustrate the types of exposures companies face in the cyber world.

Privacy

An on-line retailer attempted to sell its customers’ personal information to pay creditors as part of the retailer’s bankruptcy. The retailer’s privacy policy had stated that personally identifiable information would not be sold. A group of consumers brought a class action lawsuit on privacy grounds.

Errors, Omissions, Negligent Acts

A cosmetics company sued a search engine alleging that the search engine engaged in trademark infringement and unfair competition by selling banner advertising to another, competing cosmetics company. The search engine sold the competitor a banner ad on the results page that came up when a user entered the first company’s name as a search term.

Unauthorized Access

A hacker infiltrated an on-line shopping website and stole 300,000 customer credit card numbers. The website faced claims from the customers for unauthorized charges made on the credit cards, as well as claims from the banks that issued the cards for the costs incurred in canceling and reissuing them.

Trademark Infringement

A business that used a competitor’s trademarked name as a metatag — a piece of code used to increase the number of “hits” in response to internet searches — was sued by the competitor for trademark infringement and unfair competition.

Copyright Infringement

A company obtained articles from various print sources and sold the articles to on-line archive websites. Free-lance authors sued the archive websites, alleging that they had given permission for the use of their articles in print format only, not for use in an electronic format. The archive websites in turn sued the companies that provided the articles, seeking indemnity if found liable to the authors.

1. Some of the above are claims Media/Professional Insurance has handled. In others, MPI was not directly involved. Coverage for these claims is not to be inferred from this list but must always be determined in reference to a particular insurance policy, which is the controlling document, as well as the facts and circumstances of each claim and applicable law.

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