JLT Expands Lloyd’s Security/Privacy; Adds U.S. E&O Tech Coverage

April 4, 2006

JLT Risk Solutions Ltd;, part of London-based global broker Jardine Lloyd Thompson Group plc, announced a significantly expanded insurance program within the Lloyd’s of London market “to provide security and privacy liability protection for two of the most heavily regulated US business sectors – financial and healthcare industries, and their associated vendors and business associates.”

In 2005 JLT launched “Enterprise Privacy Protection,” which it said offers “an exceptional range of liability coverage for privacy and security risks not generally available in the insurance marketplace. The 2006 version addresses the latest issues in privacy and security.”

The announcement gave the following details featured in the coverage:
— Coverage for customer notification expenses to warn customers or patients of security breaches as required under law by an ever- growing number of states. These expenses are included with crisis management expenses up to an aggregate limit of $50,000.
— Affirmative coverage for “phishing” and “pharming”, i.e. false communications designed to trick the user in surrendering personal information
— Expanded cover for physical theft of hardware that results in data theft
— Security coverage grant extends coverage to the protection and confidentiality of customer records or information beyond security of computer systems
— Privacy coverage is provided under common law and statutes/regulations. It is not redefined by the underwriters to limit what a regulator deems to be privacy.
— Expanded list of covered “privacy regulations” beyond HIPAA and Gramm-Leach-Bliley to include state medical privacy laws and privacy provisions of Federal Fair Credit Reporting Act.
— Contractual coverage for breach of insured’s privacy statement

JLT also noted that “there is a second policy form introduced within Lloyd’s of London that combines the security and privacy coverage of Enterprise Privacy Protection with technology errors and omissions, and in some cases miscellaneous professional liability exposures as well. This second policy form has $10 million in primary capacity with excess support from other Lloyd’s and US excess markets. This policy version will be available to a broad range of clients, including financial institutions, health care, and their business vendors.”

Both policy forms are accessible to U.S. brokers appointed through JLT Risk Solutions Ltd. in London. The program is also available to clients on a worldwide basis.

Emily Freeman, Partner, JLT Risk Solutions, commented: “2005 saw a tsunami wave of data protection events. Since security issues of a large US data broker were revealed in February 2005, more than 53 million individuals in the US had their personal medical and/or financial information exposed or threatened. There have also been highly publicized regulatory enforcement actions and class action lawsuits. This policy is still quite unique in the insurance industry with its approach to the scope of coverage and straightforward underwriting qualification.”

For more information on this product and how to access it, contact Emily Freeman on +1 415 835 1263/+44(0) 20 7528 4679 or by e-mail at: Emily Freeman.

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