This component offers coverage providing reasonable and necessary mitigation costs and expenses incurred as a result of a privacy breach, security breach or adverse media report, including legal expenses, public relations expenses, advertising and IT forensic expenses, postage, and the cost to provide call centers, credit monitoring and identity theft assistance.

• Proactive Privacy Breach Response Costs (sub-limit) – Coverage for public relations expenses incurred in response to a security breach or privacy breach, but prior to the publication of an adverse media report, in an effort to avert or mitigate reputational harm which could result from the adverse media report.

• Voluntary Customer Notification Expenses (sub-limit) – Coverage for expenses incurred in notifying parties of a privacy breach where there is no requirement by law to do so.

 

CLAIM EXAMPLE:

A computer system operated by a dermatology practice was infected by a virus, which resulted in the exposure of patient information (PHI, PII).

In total 6,263 patient records were exposed.  The costs associated with the breach included patient notification costs, IT forensic expenses, legal fees, and public relations expenses, all totaling more than $200,000.