Coverage Question Series – Part 18
Post on July 27th, 2018
This is a continuing series in which we address policy coverage questions that we routinely discuss with you and your colleagues. The answers provided are based on the basic policy form, currently LPLP-1r
; refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided.
My yahoo.com email account that I use for business, even though there have been multiple security breaches at Yahoo where the data was stolen by unknown third-parties, was somehow compromised and they had access to client data, am I covered?
Yes, the data breach endorsement would respond to the privacy breach. The endorsement, provided on OBLIC policies for no additional cost, will cover the expenses related to the investigation of the breach, the notification expenses, and credit monitoring expenses. These breaches can happen to anyone, even those vigilant for such attempts. There are separate limits for this endorsement that can be increased.
Practice Pro-tip: Do not use free email addresses for your profession. For a few dollars a month, you can have a professional email address that is more secure than the perennially hacked Yahoo. If you insist on keeping your free account, add authentication requirements, that will require a code texted to your phone to be entered anytime a new device attempts to log in to your account. And, every time Yahoo reports they were hacked several months prior, change your password! As the persons attempting to breach get more sophisticated, you need to take advantage of the already existing tools to ensure you are satisfying your duty of keeping your client data confidential.
As you should expect, these Q&A scenarios are based on simple hypotheticals. Coverage determinations for an actual claim are ultimately based on the unique facts, applicable law, and the Terms, Conditions, Limitations, Exclusions, and Endorsements of your policy.
Carl Marsh, Esq.