Data Breach Damages Quickly Mount

Sharon Dold

There has been much discussion in the cyber insurance marketplace about third party damages from a data breach. A hospital in California recently agreed to pay over $240 to each patient who was affected by the breach. Although the breach was relatively small with only 33,000 people impacted, the damages quickly mount.

St. Joseph Health to pay $7.5M | Becker’s Hospital Review

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2015 Professional Liability Conference Great Success

Sharon Dold

The 2015 Professional Liability Conference was a great success. The focus was on cybersecurity. With several large breaches at health insurers over the past year, cyber insurance has risen to the top of most Blue Plan risk managers’ priorities.

Conference speakers covered a range of topics. The meeting kicked off with greetings by Mr. Scott Serota, President and CEO of the BCBSA and by Mr. Scott Beacham, President and CEO of BCS.

From there, we shifted quickly to cyber risks. Simon Barker of Blue Moon Consulting spoke about reputational risks. One of BCS’s reinsurance representatives, Tom Draper, spoke about developments in cyber insurance. Later that day, we worked through a table top exercise with Ted Kobus of BakerHostetler, which gave risk managers an idea of the questions and issues that arise during a breach. Chris DiIenno of Lewis Brisbois addressed legal and regulatory trends related to cyber breaches.

The next day, the focus was on the cyber program, since named CyberBlue 2016, that Plans and BCS are jointly creating. The risk manager work groups presented an update of their activities and reinsurance representatives provided more details on the inner workings of the  program. 

We had a great discussions with lots of input from the conference attendees. We hope to see you again next year!

For more information visit:
Professional Liability | BCS Insurance Company

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D&O and Professional Liability 2013 Review

Sharon Dold

Directors and Officers Liability and Professional Liability insurers continue to see a significant volume of claims.  The law firm of Troutman Sanders prepared this summary of a selection of 2013 court decisions. They have categorized the claims by issues such as timely notice, prior knowledge, prior acts, dishonesty exclusions, and insured versus insured exclusions.  Policy forms vary from insurer to insurer.  Laws also vary from state to state.  With those points in mind and with the wide variety of cases discussed, we found this paper to be an interesting read.

D&O and Professional Liability 2013 | Troutman Sanders
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2013 Cyber Liability & Data Breach Insurance Claims study

Sharon Dold

While we read much in the press about cyber attacks and privacy breaches, we hear little from the insurance companies who are paying the claims. The third annual Cyber Liability & Data Breach Insurance Claims study, by NetDiligence® examines 145 actual data breach insurance claims. NetDiligence® has summarized its findings in a report that looks at costs, types of data exposed, and causes of loss to help risk management professionals better understand and plan for the risks of data insecurity.

Cyber Liability & Data Breach Insurance Claims
NetDiligence: Continuing to Shed Light on Cyber Claim Costs

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2013 Professional Liability Conference a Success

Sharon Dold

The 2013 Professional Liability Conference was a great success. A lineup of insightful speakers covered a range of topics and issues that effect our industry. Key topic highlights of guest speakers include:

Lori Nugent of Wilson Elser on cybersecurity

  • Cyber Preparedness: Where We’ve Been and Where We’re Going
  • Top Challenges Breached Companies Face
  • Legal Environment for Addressing Breaches
Ciara Frost of Kerns, Frost & Pearlman on emerging issues for Managed Care companies

  • Healthcare Reform and Its Impact on Liability Exposures
  • Meyer v. Health Plan of Nevada—Does it portend increased future liability for Payors and ACOs?
  • Other potential litigation arising from the Patient Protection and Affordable Care Act
Additionally, Scott Nehs of the Blue Cross Blue Shield Association gave a presentation on the current legal climate impacting the Blues.

With engaged discussion and networking opportunities, the Professional Liability Conference was a great venue for industry professionals to meet, exchange knowledge, and learn together. We hope to see you again next year.
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The Roles of Agents in the Exchange Marketplace

Sharon Dold

Though the insurance industry has been focused on the Exchanges, Agents continue to have questions about their roles and the roles of navigators. Fortunately, there are online resources from the federal and state governments that answer many of the questions agents have. The Centers for Medicare & Medicaid Services website is a good place to start.

In-Person Assistance in the Health Insurance Marketplace  |  CMS.gov, Centers for Medicare & Medicaid Services
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New P&C Rider Available

Sharon Dold

Optional Limited Personal Lines Property and Casualty endorsement available to Blue Cross and Blue Shield agents who purchase BCS E&O coverage through MGA Insurance Services.

As our industry adapts to a changing world, agents are facing new challenges and opportunities. Many agents are seeking to diversify their activities by including personal lines property and casualty insurance in their sales strategies. In recognition of these changes, BCS Insurance Company and MGA Insurance Services are pleased to announce that we are rolling out a new coverage enhancement to agents. BCS Insurance Company has just introduced a Property & Casualty endorsement that addresses exposures agents may have from the sales of personal lines insurance. This endorsement is available to agents that purchase the BCSI E&O coverage. This optional endorsement extends coverage, on a limited basis, to the sale of personal lines including homeowners, automobile insurance and travel insurance. As always, please refer to the policy and endorsements for a full description of the coverage. Agents that want to find out more information or purchase the coverage can visit www.bcs-eo.com or call MGA at 888.437.6611.
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