Case Study: Securing Comprehensive Tech E&O & Cyber Coverage for AI-Driven Biometric Security Solutions

Background

A cutting-edge technology company specializes in providing AI-driven biometric access control solutions using facial authentication to enhance security. The company's innovative approach replaces traditional access cards and keypads, making security systems more efficient and user-friendly. However, since their core service involves collecting and using sensitive biometric data, the company faced significant liability exposure, particularly under the Biometric Information Privacy Act (BIPA). They needed a solid insurance program offering tech E&O and cyber coverage with a $20 million limit.

Challenges

• BIPA Exposure BIPA regulates the collection, use, and storage of biometric data, such as facial recognition and fingerprints. It mandates strict compliance, including obtaining consent, implementing data security measures, and disclosing retention policies. Given the risk of costly lawsuits if BIPA is violated, securing coverage without a BIPA exclusion was crucial.
• High Limit Request The company required $20 million in total limits, a substantial amount for a technology firm operating in a high-risk space.
• Cost Considerations Achieving high-limit coverage at a reasonable cost was a priority to ensure the solution was both protective and affordable.

Solution

Our brokerage team built a comprehensive tech E&O and cyber insurance tower to provide the necessary $20 million limit. Crucially, the policies we secured did not include a BIPA exclusion, which was essential given the company’s reliance on biometric data and the regulatory environment. We structured this coverage for approximately $85,000, providing the firm with both robust protection and cost efficiency.

Result

We successfully secured $20 million in tech E&O and cyber coverage, free of BIPA exclusions. This allowed the company to continue developing and providing AI-driven biometric security solutions with confidence, knowing they were protected against the unique risks of biometric data collection. The coverage was not only comprehensive but also cost-effective, ensuring the firm remained competitive in a heavily regulated market.

Leveraging our expertise in biometric data privacy and insurance solutions, we delivered a customized program that provided the company with the protection they needed, ensuring compliance with BIPA and safeguarding their innovative technology in a competitive market.

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