The product responds to the financial risk the new California Consumer Privacy Act regulation presents to existing Coalition policyholders and small to mid-sized businesses.
PRODUCT: Regulatory Coverage Enhancement Endorsement
COMPANIES: Swiss Re Corporate Solutions, Lloyd’s of London and Argo Pro
BEST RATING: Coalition’s products are offered with the financial security of Swiss Re Corporate (A+), Lloyd’s of London (A+) and Argo Pro US (A).
AVAILABILITY: Coverage is available through Coalition-appointed agents and brokers or to all Big “I” members through Big “I” Markets.
FOCUS: The California Consumer Privacy Act (CCPA) went into effect on Jan. 1. Similar to Coalition’s GDPR endorsement, this product responds to the financial risk the new regulation presents to existing Coalition policyholders and small to mid-sized businesses.
The CCPA regulates how a business collects, uses and discloses almost any kind of information about an individual. Companies have 30 days to comply with notifications of a violation, with fines of up to $7,500 per record or individual impacted. The ramifications of CCPA are widespread and can cause irreparable damage to small or mid-size businesses.
“When you consider the tremendous number of individuals affected by recent breaches, the actual fine increases very quickly,” says Joshua Motta, cofounder & CEO of Coalition. “While Coalition’s policy always shouldered that burden by responding with broad coverage for any costs and liability arising from a data breach or security failure, this new endorsement includes coverage for the alleged failure to comply with certain aspects of the CCPA.”
COVERAGE DETAILS: Coalition was founded to provide a better way to protect businesses from breaches and cyber incidents, not only by providing them with free cybersecurity tools, such as 24/7 security scanning, automated security alerts, and employee training, but also a full spectrum of insurance coverage, including bodily harm, property damage and pollution.
UNDERWRITING: Coalition assesses businesses individually in terms of revenue, industry, technical exposure and other factors.
MINIMUM PREMIUM: N/A
TARGET: Small to mid-sized businesses.
COVERAGE AVAILABILITY: All U.S. states.
CONTACT: JP Cavender, 316 Pacific Ave., San Francisco, CA 94111; 415-846-5342.
Will Jones is IA managing editor.