Home > Property & Casualty > To notify, or not to notify – and would it be covered? Insurance coverage highlights from the South Shore Hospital privacy breach

To notify, or not to notify – and would it be covered? Insurance coverage highlights from the South Shore Hospital privacy breach

Back in July, the South Shore Hospital announced that computer files containing personally identifiable information had been lost. The lost files were stored on back-up computer tapes that had been sent to a service provider for destruction, but the tapes never reached their destination. The hospital disclosed the loss of the data and notified federal and state authorities, and engaged forensic specialists to investigate the the breach and assess the likelihood that confidential personal information was actually compromised.

The notification process and what they legally concluded is the subject of a new WGA White Paper in which we examine whether or not this would be covered by insurance. In the paper we examine the trigger for insurance coverage under privacy insurance policies and the nuance of this rapidly developing, but still very new area of insurance. Companies should not be lulled into complacency about the scope of their insurance protection simply because they have a policy or endorsement with the words “privacy” or “security” in its title. Focus should be given to the needs and make sure an insurance policy’s language reflects coverage expectations. Click here to view WGA’s new White Paper on the South Shore Hospital case.

  1. May 24, 2012 at 3:42 pm

    WBUR reported today the South Shore Hospital will pay $750,000 to settle data breach allegations: http://wbur.fm/MuXmur

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