Insurance protection for innovative companies

With innovative products and services, complex partnerships and global footprints, ICT, life sciences, media and telecom companies face new threats to business risk, writes Zita Erdis of Keaney Insurance Brokers Ltd.

When assessing the level of protection of your company and your business, you need to consider three main areas of insurance, insurance coverage specific to your industry, and traditional liability, liability, and liability. Employer, business interruption and property insurance.

1. professional responsibility
Does your policy cover your expectations? Check your policies for the following:

Are the compensation limits sufficient?
Do they at least meet the requirements of your contracts with third parties?

Is the compensation limit based on “a single claim” or “total amount”?

Do you have global jurisdiction and geographical boundaries?
Note that one of the biggest challenges is ensuring that the jurisdiction takes into account all the jurisdictions that make claims and that the geographical borders must be reconciled with those in countries. Work is in progress.

Are fraud and dishonesty included?
Will the policy pay for damages resulting from a worker’s fraud / dishonest claim?

Does your policy include a breach of contract coverage?
One of the most serious areas is whether the contractual liability is covered. Companies conclude contracts with third parties on a daily basis. These include indemnity guarantees that may not be capped, and include exclusion and limitation clauses, indemnity clauses, intellectual property rights, and jurisdiction and process clauses, all of which must be carefully assessed for possible reaction of the insurance policy. do that

2. Cyber ​​responsibility
Every business needs protection from the consequences of leaks and data breaches.

Businesses must fully understand and fulfill their contractual and regulatory obligations and responsibilities, particularly with regard to information security and data protection laws.

Policies can include:

Notification of violations
Privacy laws are common in most of the United States and are now spreading throughout the world. This is one of the main reasons why Cyber ​​Responsibility Coverage is purchased, as it usually covers the coverage of notification services for violations.

data responsibility
Covers damage and defense costs associated with a data breach.

reputational damage
Provides protection to prevent or mitigate damage to your reputation or brand.

loss of income
Provides coverage for lost revenue during system outages and loss of revenue due to reputation issues, ie loss of customers.

Retroactive Date / Date of Discovery
An event that causes a privacy violation can be undetectable for a long time. It is very important to know the “retroactive effect” of the directive, ie. H. How far the cover extends. The coverage may also apply from the “date of discovery” of a privacy violation, d. H. From the time you discover the existence of the violation.

3. Liability of directors and officers
As any company is exposed to risk, this hedge should therefore be a prerequisite for the company’s risk management strategy.

Why is it necessary?
Mistakes may be made and directors and officers are often personally and legally liable for their actual or suspected misconduct or breach of duty.

Who should be protected?
Executives / Officers – This cover provides them with financial protection against claims that may arise from decisions taken as part of their usual managerial responsibilities.

What is protected?
The personal property of directors and officers.

Who is there?
Current and future directors and officers, which may include non-executive directors.

Which coverage limit should I buy?
This varies considerably depending on the size of the company. In addition, international activities, especially in the US, should be taken into account.

Where can the claims come from?
Liabilities can come from many areas, including shareholder actions, such as the actions of a regulator. Bureau of Environmental Protection Agency or Director of Enterprise Implementation, Employment Issues, including but not limited to Discrimination, Harassment, Inappropriate Reduction, etc.

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