emerging issues hit home

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

@

Source: www.privacyrights.org

individuals were affected

188,000

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.