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Emerging Issues Hit Home


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When technology and privacy expectations clash, the result is more claims -
and this emerging trend hits home in the habitational risk arena. Cameras installed for tenant safety may invade their privacy. Personal information maintained for tenant screening could, if breached, create notification responsibilities and liability. Whether you insure a multi-family dwelling or a two-story complex or a high-rise apartment building, privacy issues reside. Fortunately, insurance products and underwriting tools are also emerging to help.

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Emerging Issues Hit Home

  1. 1. Emerging issues hit HOME spotlight on Privacy and Security Breach for Habitational risk exposures
  2. 2. Both privacy laws and lawsuits are increasing. this affects all types of risks, including landlords
  3. 3. Exposure to privacy breach can come from many sources Consider the following real life scenarios
  4. 4. Real Scenario # 1 a commercial landlord received reports of vandalism in restrooms and installed surveillance cameras without notifying residents
  5. 5. A tenant saw the video feeds and sued the landlord for breach of privacy Over 60 tenants are seeking $$$ damages Source: Soliman v. The Kushner Companies, Inc., 2013 N.J. Super. LEXIS 150.
  6. 6. This can happen in a vacation rental too $4.6 m the amount demanded after a couple found cameras hidden in smoke detectors, sockets and ac ducts Source:
  7. 7. Over 1/3 of all surveillance sensors are bought by landlords Do you know where the cameras are on your insured’s property? Source: Video Surveillance Systems & Services Market - (Analog, IP), Components (Hardware [Cameras, Monitors, Storage], Software [Video Analytics, VMS], Service (VSaaS - Hosted, Managed, Hybrid) - Analysis & Forecast (2013 - 2018) Markets and Markets, September 2013
  8. 8. Real Scenario # 2 a housing authority vendor sent personal information to the wrong mailing list @
  9. 9. 188,000 individuals were affected Source:
  10. 10. ? security How could they have prevented this mistake
  11. 11. Real Scenario # 3 an abandoned garbage bag with piles of old tenant applications and social security numbers was found on the side of a road
  12. 12. breaches more than 1/3 of all breaches involve paper Source: 2013 Data Breach Investigations Report, Verizon RISK Team, April 2013
  13. 13. Where do property owners save tenant’s personal information How do they store and dispose of old records ? ?
  14. 14. Are your insureds aware of these exposures?
  15. 15. Most are probably not
  16. 16. So what does this mean to you? The insured could have a legal duty to notify tenants when a breach occurs The insured could have to pay for forensic and legal costs as a result The breach may have an impact on the insured’s business
  17. 17. Coverage is evolving New ISO exclusions, both mandatory They have been approved and optional, will exclude loss from disclosure of personal information in most states Source: Insurance Services Office, Inc. (state approvals as of Dec. 19, 2013)
  18. 18. New insurance products are rapidly emerging in the market to help fill The gap There are many options
  19. 19. What are you doing for your crucial habitational business ?
  20. 20. Click to contact Mindy Pollack to discuss the underwriting and new product possibilities This presentation is intended to provide background information to our clients and professional staff. It is time sensitive and may need to be revised and updated periodically.