Chubb helps professional service, media and tech companies manage converging risks

The Chubb Group of Insurance Companies has created an insurance product to help protect professional services firms, media organizations and technology companies from errors and omissions (E&O), media liability and cyber exposures.

“As new technologies and growth opportunities prompt companies to expand their product and service offerings beyond traditional areas, they are facing converging liability exposures,” said Catherine Padalino, senior vice president and global errors and omissions manager for Chubb. “A firm that provides consulting services may also be creating website content, storing confidential customer data and providing software products. An organization that creates media and advertising may also be developing applications to disseminate content and collect private consumer information. These organizations are exposed to media, cyber, and errors and omissions liability.”

Chubb Professional Portfolio is a blended insurance product that helps provide a seamless approach to address these exposures, reduce potential coverage gaps and streamline the handling of claims.

The product enables companies to customize their insurance protection by selecting one or more coverage parts:

• Miscellaneous Professional and Technology Services Liability – errors and omissions liability insurance for professional service firms including those that may provide technology services in addition to professional services.
• Technology Products and Services Liability – errors and omissions liability insurance for information and network technology companies.
• MediaGuard – media liability insurance for companies that produce, promote or publish media, advertising or other content.
• CyberSecurity – cyber liability (third-party) and expense (first-party) insurance for companies that collect, store or transmit private or proprietary information.

Padalino notes that a liability lawsuit or a data breach can place a heavy financial burden on any company, especially a small or medium size firm:

• The average cost of a data breach for a U.S. organization is $6.5 million, according to the Ponemon Institute.
• Media Law Resource Center reports that the average initial jury award for a media liability lawsuit is $2.6 million.
• The average cost of a professional liability E&O claim, including judgments, settlements and legal fees, is more than $180,000, a Chubb survey found.

“In addition to purchasing insurance, companies can take various steps to mitigate their vulnerability to these exposures and their serious financial consequences,” said Padalino. For example, Chubb Professional Portfolio customers can access a loss prevention program to identify and retain experts who can help them prevent or respond to a network security or privacy incident.