Beazley's new professional liability policy for architects & engineers provides first- and third-party cyber liability coverage, including access to data breach response services from an in-house team.
PRODUCT: Architects & engineers professional liability
COMPANY: Beazley Insurance Company
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through appointed agents and brokers.
FOCUS: Most of today’s businesses are well aware of the need to protect their customer and employee data from numerous security threats. But small and midsize firms, which comprise 62% of cyber breach victims, often lack sophisticated security measures, as well as adequate crisis preparation—and the cost of customer notification alone can cause irreversible financial strain on such a company.
Beazley's new professional liability policy for architects & engineers provides first- and third-party cyber liability coverage, including access to data breach response services from Beazley's in-house team, BBR Services. Additional services include pre-claims assistance, proactive claims management through experienced construction lawyers and claims management professionals, contract reviews and risk management.
“It is very important for our policies to be simple and clear,” says James Schwartz, Beazley’s U.S. A&E focus group leader. “But the wording of our policies is only part of the story. Even more vital is how we actually respond to claims. Exemplary claims service is essential in order to alleviate what we know can be a stressful experience for architects & engineers."
UNDERWRITING: The policy includes technology risk coverage for electronic transfer of data, copyright infringement, web-hosting functions and privacy liability; a contractors pollution liability extension; an ADA/FHA/OSHA regulatory actions reimbursement extension, $30,000 per policy period; a defendant’s reimbursement extension, up to $500 per day subject to a maximum of $10,000 per claim; and a disciplinary proceedings reimbursement extension, $10,000 per policy period.
Additional coverage includes a reputation management reimbursement extension, $15,000 per policy period; a broad definition of “insured” which includes the insured’s participation in joint ventures; automatic 60-day coverage for acquired entities; a blanket waiver of subrogation provision for clients of the insured as required by contract; a punitive damages extension where insurable by law; and a mediation deductible credit, 50% up to $25,000 per claim.
Other coverage enhancements include an early resolution deductible credit, which means that if a claim is resolved within six months, Beazley will reduce the client's deductible on the claim by 50% up to $25,000.
MINIMUM PREMIUM: None.
TARGET: Architects & engineers, agency construction managers, project managers, interior designers, surveyors and environmental consultants of all sizes.
COVERAGE TERRITORY: All 50 U.S. states.
CONTACT: Jim Schwartz, U.S. A&E focus group leader; Beazley Insurance Company, 141 Tremont Street, Suite 1200, Boston, MA 02111; 617-239-2607.
Ronimarie Acord is an IA contributor.