The American Institute of CPAs and its insurers Aon Insurance Services and CNA have added a network risk and privacy claim endorsement to every policy issued under the AICPA's professional liability insurance program.
The amendment to the existing policy modifies the definition of "claim" to include both privacy claims and client network damage claims.
In addition, the policy's regulatory inquiry supplementary benefit has been expanded to include an actual or alleged violation of a privacy-breach-notice law or privacy injury and identity theft laws that occurred in the rendering of professional services. The policy amendments will be rolled out to policyholders as they are approved by each state insurance department.
"Privacy breaches are increasing and we have seen them impact a number of accounting firms," said CNA assistant vice president Jeff Day. "That, coupled with escalating regulatory scrutiny, has increased awareness of this exposure."
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