ACE USA, the U.S.-based retail operations of the ACE Group, today announced a ground-breaking option for ACE Privacy Protection policyholders, through enhancements to its industry leading Data Breach Team Endorsement. The new Data Breach Fund Sidecar Endorsement eliminates tiered sub-limits and provides a single data breach fund limit, one that falls outside the policy’s liability limits for all data breach expenses. The ACE Data Breach Team is a panel of independent legal, computer forensic, notification, call center, crisis communications, fraud consultation, credit monitoring, and identity restoration firms. For the first time, policyholders can obtain both the ACE Data Breach Team and a single data breach expense limit, separate from the policy's liability limit — an option that is unequaled in the marketplace.
“ACE recognizes that small and mid-size organizations have a need for a robust post-breach response, and the ACE Data Breach Team is especially qualified to address these needs through our experienced data breach coach, superb vendors, and industry-focused expertise,” said Toby Merrill, Vice President, ACE Professional Risk. “This is the first and only sidecar program to address data breaches, and we’re excited to be able to announce it on Data Privacy Day.”
Michael Tanenbaum, Senior Vice President, ACE Professional Risk, added, “Organizations face significant liability when confidential client or proprietary information is lost or compromised. With the introduction of the Data Breach Fund Sidecar Endorsement, ACE provides expanded coverage for our policyholders, including taking data breach expenses outside of the policy limit.”
ACE Professional Risk helps firms mitigate the financial and reputational risks associated with privacy breaches. The ACE Data Breach Team, combined with one of the Data Breach Team Endorsement options, bridges the gap between risk transfer and purchased loss control, creating a comprehensive risk management program for privacy, data breach, and network security risk.
Data Breach Team Endorsement enhancements include:
- Coverage for Regulatory Communications, including:
- Payment for legal services to communicate with a regulator before a formal investigation
- Coverage for the Data Breach Coach or another law firm on the Data Breach Team panel
- Self-insured retention for a Regulatory Proceeding, which is eroded by Regulatory Communications coverage
- Forensics coverage, which now responds to any failure to protect Personal Information, and is no longer limited to network security failures
The new Data Breach Fund Sidecar Endorsement benefits include:
- All of the benefits already provided by the Data Breach Team Endorsement
- Expanded coverage for insureds with less than $1 billion in annual sales revenue
- Data Breach Fund Sidecar limit outside of the standard policy limits
- Sidecar limit intact, even when standard policy limits have been exhausted
- Tiered sub-limits removed, providing a single limit for all data breach expenses, including expenses incurred to retain services for: the Data Breach Coach, forensics, complying with Privacy Regulations, Regulatory Communications, legal services, notification services (statutory and voluntary), call center services, public relations, credit monitoring, identity monitoring, and fraud consultation
- Sidecar limit offered at 50 percent of the Privacy Liability limit on a standard basis (customers are able to purchase lower limits if requested)
- No retention for Data Breach Coach expenses
- Simplified structure to allow brokers and clients to build excess programs above ACE limits
ACE’s Data Breach Fund Sidecar Endorsement offers the expanded coverage and services needed to help small and mid-sized organizations mitigate and manage the rising risk and expense of data breaches, creating a comprehensive risk management program for privacy, data breach, and network security risk.