UCIP Coverage Update

Johnnie Miller

Data Breach Coverages

1. Third Party Liability2. Privacy Response Expenses3. Regulatory Proceedings and

Penalties

Third Party Liability

• Damages incurred by third parties resulting from a breach of data from a county computer system.

• Exclusions to Consider –– Liability accepted contractually– Unlawful acquisition of Personal

Information including failure to comply with opt-in/opt-out requirements

Privacy Response Expenses

Regulatory Proceedings and Penalties

Data Breach Limits

1. Third Party Liability – $1,000,0002. Privacy Response Expenses – $250,0003. Regulatory Proceedings - $100,000 Regulatory Penalties - $50,000• Per Claim Limit of $1,000,000 for 1, 2 &

3• Aggregate Annual Limit of $1,000,000• Consider securing higher limits

based on your county’s exposure

Defense Extensions

• Defense triggered at Notice of Claim, rather than filing of Claim or Suit

• Defense of claims filed without damages as a strategy to leave county w/o defense

• Member consent for settlement required

• Defense prior to Claim – Hotlines to coverage

Liability Limits

• Not all limits are created equal!• What is included in the limit, what is

in addition to the limit?• How are different coverages limited?• How are aggregates structured?– Line of coverage aggregates– Policy/Annual aggregates– Primary and Excess aggregates

Liability Limits

$2M/No Agg.

UCIP Limits Structure

Efficiency Upgrade

• Provides LEED certified replacements if building is LEED certified at time of loss

• Provides upgrades to damaged property to LEED certified equipment to work towards designation

• Does not guarantee LEED certification

County Related Entities Expansion

• Districts and interlocals are a valuable tools for counties

• Ultimately, counties pay the costs of these entities, or will be asked for financial help if they find themselves in trouble

• Entities that provide county services are eligible now;– As a County Controlled Entity; or– As a separate UCIP Member

Requirements for Other Entities• Operating under current statutes

– Interlocal entities under UCA 11-13– Mineral Lease pass-through entities– Building Authorities, Service Districts and Conservation

Districts under UCA 17D (not Local Districts)– Recreation Boards under UCA 11-2– Health Districts under UCA 26A– Children’s Justice Centers under UCA 67-5b

• Requires UCIP County sponsorship• Approved by UCIP Board

Those underwritten to date see a 50% savings