When technology and privacy expectations clash, the result is more claims - and this emerging trend hits home in the habitational risk arena. Cameras installed for tenant safety may invade their privacy. Personal information maintained for tenant screening could, if breached, create notification responsibilities and liability. Whether you insure a multi-family dwelling or a two-story complex or a high-rise apartment building, privacy issues reside. Fortunately, insurance products and underwriting tools are also emerging to help. Read the full blog post here: http://www.genre.com/knowledge/blog/emerging-issues-hit-home.html

1. Emerging issues hit HOME
spotlight on Privacy and Security Breach for Habitational risk exposures

2. Both privacy laws and lawsuits are increasing.
this affects all types of risks, including
landlords

3. Exposure to
privacy breach can
come from
many sources
Consider the following real life scenarios

4. Real Scenario # 1
a commercial landlord received
reports of vandalism in restrooms
and installed surveillance cameras
without notifying residents

5. A tenant saw the video feeds
and sued the landlord for
breach of privacy
Over
60 tenants are seeking $$$ damages
Source: Soliman v. The Kushner Companies, Inc., 2013 N.J. Super. LEXIS 150.

6. This can happen in a vacation rental too
$4.6 m
the amount
demanded
after a couple found cameras hidden in
smoke detectors, sockets and ac ducts
Source: Abcnews.go.com

7. Over 1/3 of all surveillance
sensors are bought
by landlords
Do you know where the cameras are on
your insured’s property?
Source: Video Surveillance Systems & Services Market - (Analog, IP), Components (Hardware [Cameras, Monitors, Storage], Software [Video Analytics, VMS], Service (VSaaS - Hosted, Managed, Hybrid) - Analysis & Forecast
(2013 - 2018) Markets and Markets, September 2013

8. Real Scenario # 2
a housing authority vendor
sent personal information
to the wrong mailing list
@

9. 188,000
individuals
were affected
Source: www.privacyrights.org

10. ?
security
How could they
have prevented
this mistake

11. Real Scenario # 3
an abandoned garbage bag with piles
of old tenant applications and social
security numbers was found on the
side of a road

12. breaches
more than 1/3 of all breaches involve paper
Source: 2013 Data Breach Investigations Report, Verizon RISK Team, April 2013

13. Where do property owners save
tenant’s personal information
How do they store and dispose
of old records
?
?

14. Are your insureds aware
of these exposures?

15. Most are probably not

16. So what does this mean to you?
The insured could
have a legal duty to
notify tenants when
a breach occurs
The insured could
have to pay for
forensic and legal
costs as a result
The breach may
have an impact
on the
insured’s business

17. Coverage
is evolving
New ISO exclusions, both mandatory They have been approved
and optional, will exclude loss from
disclosure of personal information
in most states
Source: Insurance Services Office, Inc. (state approvals as of Dec. 19, 2013)

18. New insurance products
are rapidly emerging in
the market to help fill
The gap
There are many
options

19. What are you doing
for your crucial
habitational business
?

20. Click to contact Mindy Pollack
to discuss the underwriting
and new product possibilities
This presentation is intended to provide background information to our clients and professional staff.
It is time sensitive and may need to be revised and updated periodically.