emerging issues hit home
DESCRIPTION
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. Read the full blog post here: http://www.genre.com/knowledge/blog/emerging-issues-hit-home.htmlTRANSCRIPT
Emerging issues hit s p o t l i g h t o n P r i v a c y a n d S e c u r i t y B r e a c h f o r H a b i t a t i o n a l r i s k e x p o s u r e s
HOME
Both privacy laws and lawsuits are increasing. this affects all types of risks, including
landlords
Exposure to privacy breach can
come from many sources
Consider the following real life scenarios
a commercial landlord received reports of vandalism in restrooms and installed surveillance cameras without notifying residents
Real Scenario # 1
A tenant saw the video feeds and sued the landlord for breach of privacy
60 tenants are seeking $$$ damages Source: Soliman v. The Kushner Companies, Inc., 2013 N.J. Super. LEXIS 150.
Over
This can happen in a vacation rental too
Source: Abcnews.go.com
after a couple found cameras hidden in smoke detectors, sockets and ac ducts
$4.6 m the amount demanded
Do you know where the cameras are on your insured’s property?
Over 1/3 of all surveillance sensors are bought by landlords
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
Real Scenario # 2
a housing authority vendor sent personal information
to the wrong mailing list
@
How could they have prevented this mistake
? se
curi
ty
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
more than 1/3 of all breaches involve paper
breaches
Source: 2013 Data Breach Investigations Report, Verizon RISK Team, April 2013
Where do property owners save tenant’s personal information
How do they store and dispose of old records
? ?
Are your insureds aware of these exposures?
Most are probably not
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
Coverage is evolving
New ISO exclusions, both mandatory and optional, will exclude loss from disclosure of personal information
They have been approved
in most states Source: Insurance Services Office, Inc. (state approvals as of Dec. 19, 2013)
New insurance products are rapidly emerging in the market to help fill The gap
There are many options
What are you doing for your crucial habitational business ?
to discuss the underwriting and new product possibilities
Click to contact Mindy Pollack
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.