Friday, February 17, 2012

Does Your Company Have a Privacy Policy?

Privacy Liability is a growing threat to businesses.  In response, more Privacy insurance policies are appearing in the industry.  These policies define Privacy Liability or "Privacy Injury" as
Unauthorized disclosure of, inability to access, or inaccuracy with respect to, "nonpublic personal information" in violation of:
1. your "privacy policy"; or
2. any federal, state , foreign or other law, statute or regulation governing the confidentiality, integrity or accessibility of "nonpublic personal information"...
If your state doesn't have such a law that governs the confidentiality of information, then your company must have a privacy policy in order to trigger coverage under this insurance policy.  What is a privacy policy?  Here's a definition from an insurance company's form:
Privacy policy means your policies in written or electronic form that:
1.  govern the collection, dissemination, confidentiality, integrity, accuracy or availability of "nonpublic personal information"; and  ["and" is a key word here, JN]
2.  you provide to your customers, "employees" or other who provide you wtih "nonpublic personal information".
If you are looking to protect yourself from privacy liability claims, start by writing a privacy policy AND disseminating it to all customers, employees, etc.

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