Breach – Utah Technology Council Event Recap

Today’s post is courtesy of John Campos of Diversified Insurance Venture Practice Group. John is a Vice-President at Diversified Insurance Group and works primarily with Emerging Growth, Technology and Franchise Companies. If you want to get a quick bio click HERE. Enjoy!

Diversified Insurance Brokers hosted a Utah Technology Council Lunch Event. The text that follows is a recap written by John Campos:

Aaron Latto, Esq. of Travelers Insurance and Jonathan Johnson of Overstock.com presented last week on the topics of Security, Privacy and Errors & Omissions exposures for technology and mainstream companies of all types.

Mr. Johnson spoke of the importance of having the right policies and procedures in place, including insurance, referring to his experience during the many lawsuits TenFold Corporation faced a few years ago. He said that, had it not been for the insurance team and policies, the claims amounting to $300M (settling for $32M) would have certainly bankrupted the company.

Mr. Latto spoke about specific laws and requirements that affect almost every type of business, including claims scenarios from Utah and from across the nation. He showed that claims are increasing for smaller and emerging businesses in the following areas:

* Electronic Eavesdropping
* FACTA (Fair and Accurate Credit Transactions Act)
* Hacking / Database Security Breaches
* Vendor Liability
* Errors & Omissions / Professional Liability

Attendees learned that proper and up-to-date policies and procedures are the best prevention against incidents; however, adequate insurance should also be available for defending or resolving issues beyond a company’s control.