Hall of Shame – No Information Risk / Cyber Liability Coverage – No Insurance Coverage Quality Control Process
This scenario represents an actual coverage flaw in an insurance program of a well run, profitable business.
The following endorsement appeared on a policy designed to protect a company from cyber and information related risks. This endorsement clearly indicated there was insurance coverage for technology services. However there was no coverage for their Telecommunications Services.
The Problem
The client’s sole mission was Telecommunications. It was difficult to identify what this policy would have provided in the event of a claim.
The Solution
Intent for coverage on the part of the underwriter was likely there. The website described the company accurately as a telecommunications specialist. The insurance company and the broker did not quality control the policy appropriately. However, in the event of a claim, it would have been too late had this error not been corrected.
How KMRD Can Help:
KMRD delivers risk management and human capital solutions to over 600 clients nationwide. Our award-winning team, disciplined approach, proven processes, combined with our risk management portal make KMRD the leading choice to improve business protection and reduce the overall cost of risk.
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