The American Association of Insurance Services (AAIS) has released the sample endorsement under its business owners program (BOP). AAIS is a national insurance advisory organization that develops policy forms and rating information used by more than 700 property/casualty insurers.
The endorsement was developed in conjunction with IDentity Theft 911 (IDT911), a provider of identity and data risk management, resolution, and education services. More than half of U.S. property/casualty carriers, including several member companies of AAIS, use IDT911 for identity theft loss control and recovery services.
The endorsement, which incorporates language proposed by IDT911, covers certain services provided to a commercial account in the event that personal information in its possession is lost, stolen, accidentally released, or accidentally published. Covered expenses include:
Expert consultations;Forensic investigations;Legal and regulatory research;Notification to persons whose data may have been breached; andCredit and fraud monitoring for victims of identity theft.Coverage under the endorsement is subject to an each-event deductible and an annual aggregate limit, plus separate sublimits for forensic investigations and legal/regulatory research expenses.
Coverage extends only to the types of losses identified in the endorsement. Non-described costs are explicitly excluded, as are costs arising from reckless disregard for information security, costs to identify or correct deficiencies in systems or procedures, and other types of expenses.
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