Technology Exposures and Procuring Privacy/Security Protection

Network World recently published an article outlining several areas of exposure for Information Technology professionals and essentially any company using technology to run its business.  The article highlights the importance of licensing software and points out the IT professional could have personal liability as the individual who makes the illegal copy is technically the infringer.  Also, the article mentions a case we previously discussed involving whether or not employee text messages are private.  In this case, the Supreme Court did decide that the employee does not have an expectation of privacy for text messages, even personal ones, sent via the pager issued by the employer. 

Perhaps the key area of concern, as discussed in the article, is the need to keep data stored on systems and networks secure, private and confidential.  For businesses interested in transferring their privacy and security exposures via insurance, there are certainly a myriad of options available but determining what coverage is contained or available within the existing insurance portfolio and what additional policy or policies may be needed can be a daunting task.  One first step of action is to determine what privacy and security coverages are already built into or available via endorsement for the professional liability policy.  Of course not all professional liability forms contemplate privacy and security exposures.  In fact, the article on shortfalls of MPL base forms we wrote about three years ago still holds true in certain instances today.  So, when considering an update to the insurance portfolio to include privacy and security coverages, don’t miss the opportunity to procure an updated MPL form.