Brightstone Insurance to update Downstream Data Coverage to be
the best insurance product of its kind for the data-related service
It contains all the unique features of Downstream, but includes
clearer language regarding claims resulting from data breaches
and intentional acts of rogue employees. Downstream data policy
also contains improved coverages for service providers against
the growing number of data-related threats to their business.
The updated policy also contains expanded coverages for NAID
members that provide all RIM services as well as members
providing electronic data destruction services.
“We are excited about the new partnership and what it means
for NAID members,” says Brightstone’s Brian Jungeberg. “With
NAID’s unparalleled expertise in data protection and our extensive
experience with the RIM industry over the last two decades, we’ve
looked at this product from every angle.”
“While we are very happy to offer improved protection for
members and their customers, I am also excited that we’ve taken a
good sales tool and made it better,” added NAID CEO Bob Johnson.
NAID and Brightstone have also worked hard to keep the premiums
competitive with other less specific professional liability coverages
and also to retain a Lloyds of London syndicate as the underwriter.
Happily, those were both accomplished. NAID AAA Certified
Companies are currently eligible for Downstream Data Coverage.
Brightstone Insurance will serve as the official broker of
Downstream Data Coverage effective immediately. NAID has
communicated directly with existing policy holders on how the
transition affects them.
There is no reason not to protect your business. Contact
Downstream Data today to learn about professional liability
insurance for your company.
Your Voice: NAID Responds to FTC’s FATCA
In case you missed it, late last year the U.S. Federal Trade
Commission (FTC) announced that it was seeking comments on
specific issues related to the Disposal Rule contained in the Fair
and Accurate Credit Transaction Act (FATCA) from stakeholders as
part of the periodic review of such regulations. The comment period
officially closed November 21.
The FTC’s specific requests included:
• Feedback on the Disposal Rule’s economic impact
• Effects of technological changes since the Rule took effect in
• Whether the definition of “consumer information” should be
expanded to include aggregate information or data that can
be reasonably linked to an individual
NAID was sure to represent our industry by commenting. You can
read our response to the FTC in the Fall 2016 Edition of NAIDnews.
Alleged Illegal Shredding a Reminder that
There is a “Right” Way
A recent article in the UK publication The Sun describes an
investigation into the alleged improper destruction of reports on
political targets’ after the country’s Prime Minister ordered an
inquiry. While the case unfolds very publicly, hopefully some good
will come of it.
According to NAID CEO Bob Johnson, even news about events
where shredding is potentially used for the wrong reasons
can demonstrate the merits of sound and vigilant information
destruction practices. “The overwhelming majority of
businesses are required by law to protect personal information
of the customers and employees,” says Johnson. “When other
organizations are accused of shredding for the wrong reasons, it
reminds those who must destroy discarded information that they
need to demonstrate everything is being done above board and in
conformance with standard operating procedures.”
When the ENRON/Andersen case unfolded in in 2002, corporate
council began advising their customers of the need to avoid
the inadvertent information disposal practices that could raise
unwarranted suspicions. Their advice was to destroy everything that
is discarded the same way all the time. “Anything that looks unusual
or extraordinary has the risk of being interpreted as nefarious,”
says Johnson, “even though it is innocent.”
Johnson says the risk is more than academic, adding, “During
any legal contest or audit, opposing council will latch on to any