A cosmetic surgeon made unauthorized use of a spa's customer list to send advertisements of its services. One recipient sued the surgeon, claiming violations of two different, federal consumer acts. The surgeon, in turn, asked his insurer for protection under a medical professional liability policy. The claim was denied and the insured asked the courts to intervene.

Click here to see the court's opinion on whether protection existed for the surgeon's communication transgression.

Insurance policies, oddly enough, are typically considered dull and unimaginative. However, insurance policies also constantly inspire creative, even tortured interpretation of its language. Policyholders often unintentionally stumble across significant loss exposures involving how it handles information. Information-related liability may be triggered by both sensitive and non-sensitive content. Non-sensitive content that is used to mislead others or infringe on rights belonging to others commonly results in lawsuits when such use creates harm to others. Sensitive information which includes content that can lead to personally identifying others or which exposes health or financial (confidential) material may also create liability. Often, misuse of personally identifiable information may bring claims alleging violation of privacy or of breaking laws concerning data use. Insurers address such exposures deliberately, using policy language that either excludes or covers given losses.

Click here for an excerpt of wording on advertising found in the AAIS Commercial Umbrella Liability's coverage analysis in PF&M.

Insurance professionals often have to point out exclusionary or limiting coverage wording to their clients. However, such language is not necessarily negative. Insurance products are most efficient when the premium collected is a strong match with exposures that an insurer targets to be covered by such products. The opposite is also true; exclusions that make certain a given product avoids covering losses it isn't meant to cover makes insurance more affordable and preserves protection for eligible claims.

Click here for an excerpt of wording concerning what is meant to be covered found in the ISO Cyber Liability's Policy's coverage analysis in PF&M.

Securing expertise on complicated exposures that aren't routine is precisely what makes insurance professionals particularly valuable in helping clients mitigate the risks faced by their businesses. Another trait of experts immersed in insurance is the widespread willingness to share their knowledge as well as taking advantage of opportunities to learn more about unfamiliar dangers.

Click here to see an article on an educational program centered in cyber liability. It's from the April 2019 issue of Rough Notes Magazine.