Changes to our policies

Data Protection (GDPR), Legal Expenses and Pool Re Terrorism

We are making the following changes, effective for policies incepted or renewed on or after 1st May 2018 (unless stated otherwise).

Data privacy

We take data protection seriously and your clients’ privacy is important to us. There will be changes to the Data Protection legislation effective from 25 May 2018 when the revised Data Protection Bill is due to be brought into law.  
 
We want to take this opportunity to clarify how we use your clients’ data. We have produced a new ‘How we use your data’ notice which replaces any privacy notice which may have been sent in any other documentation. 
 
Prompted by the review in legislation we have reviewed the extent of cover provided by the various sections of our policies. 

Liabilities

The Data Protection extension applicable to Public & Products liability has been up-dated to reflect the new legislation. We have also incorporated additional cover for defence costs for prosecutions against the client in connection with the new legislation. 
 
This defence costs cover is for claims occurring in the current period of insurance.
 
In addition we are providing run-off cover where claims may have been covered under a previous ‘claims-made’ policy.

Professional indemnity

Some policies include a professional indemnity section in addition to a Liabilities section which provided cover for data protection criminal defence costs.  
 
To avoid confusion with covers in two different sections we have decided to remove the data protection cover under the Professional indemnity section (for prosecutions brought against the client relating to the Data Protection Act 1998) and replace it with new cover under the Liability section.  
 
Please see the Liabilities paragraph above for details.  

Medical malpractice

To make sure we reference the most recent position in our policy wording we have amended the exclusions under extensions 1 and 2 so that it reads ‘any claim arising out of any infringement of the Data Protection Act 1998 or any subsequent legislation that specifically replaces this act.’ 

Legal expenses

From 1 May 2018, we now exclude any cyber-related claims under the Data Protection cover of the Legal Defence insured event.
 
In addition, Data Protection cover under this section has been updated in line with the new Act. A further change is that we have removed the cover for appeals against the refusal of the Information Commissioner to register the Insured’s application for registration, as registration is no longer required.
 
It is, however, an important cover to maintain until the actual changeover date and for this reason we are not making these changes effective until 25 May 2018. 
 
Further changes to legal expenses
Following consideration of the limit of indemnity provided by our commercial policies for legal expenses insurance, our minimum limit of indemnity has been increased to £250,000.   This increase is to ensure that all customers benefit from wider protection in relation to claims that may be made under the legal expenses section.
 
This revised limit has been agreed in connection with legal expenses insurers DAS as a suitable minimum for our customers. A higher limit of £500,000 is available upon request.
 
There are escalating costs within the legal profession and this together with increases in awards for employment-related disputes gives rise to potential increases in the cost of claims being made under the legal expenses insurance cover. By uplifting the minimum limit of indemnity to £250,000 we are providing increased protection for your clients against potential shortfalls in cover and rising costs.
 
Any clients on lower limits will receive an uplift to this amount, which will be shown on the schedule. Clients with a higher limit currently will maintain the higher amount. 
 
For clarification, the limit of indemnity is for legal costs and expenses including solicitors’ and barristers’ fees, court costs, expenses for expert witnesses, attendance expenses, accountants’ fees and employment compensation awards (the latter are further limited to an aggregate limit in total for all such awards in any period of insurance as stated in the schedule or policy wording).

Terrorism cover

As previously advised to you, changes to the terrorism cover took effect for policies incepted or renewed from 1 April 2018, driven by a revision to the rules of the Pool Re Underwriting Manual.   
   
As a reminder the significant changes are: 
 
  • Reinsurance terms and conditions have necessitated a new policy wording with updated definitions and some new cover for terrorist-related cyber events.
  • A revised basis for calculating premiums for SMEs in which premium will be charged on material damage sums insured only, not on business interruption.
  • Revised and new discounts for large risks, such as deductibles and Flexible Limit of Loss (BI).
  • In addition to the existing ‘Crowded Places’ discount, a new risk management discount – the Vulnerability Self-Assessment Tool (VSAT) – is available for qualifying commercial portfolios with declared value greater than £50m.
  • A new rating methodology for certain risks including housing associations, local authorities and student accommodation blocks.
Due to the other changes mentioned in this notice effective from 1st May customers will now receive an updates notice with a link to an endorsement booklet including all the changes applying to their policies.

How will we be implementing these changes?

We will be issuing an endorsement booklet detailing the changes to the policy wording pending a full update to the policy document itself.  This Policy Changes Updates Booklet will be provided via a link in the customer’s renewal or new business pack. 
 
It is our intention to update the policy wording as soon as possible following completion of the legislation into UK law and commence a programme of policy re-issues. We will let you know more about this as soon as we are able. 
 
If you have any queries, or need further advice please contact your regional representative.