January 21, 2016

Unauthorized Disclosure of Confidential Information (UDCI)

business-world-541431_1920Product Overview

This policy reimburses the litigation expenses and/or damages which allege an Unauthorized or Unintentional Disclosure of a third party’s Confidential Information by the Named Insured; or, which alleges an Unauthorized Disclosure by an employee or person under the direct control of Named Insured or a former employee of the Named Insured on whose behalf of the Named Insured is responding pursuant to a written or legally imposed obligation to do so.

There is a ninety (90) Day Exclusionary Period under the UDCI policy. Any threats of infringement brought during the initial 90 days of the policy are excluded from coverage. The 90 days are not lost; they are added to the end of the last Defense policy held by the Insured.

Pre-existing threats alleging Unauthorized Disclosure, or, where the Named Insured has knowledge prior to the effective date of the policy of any activities which are or could be the basis for alleging Unauthorized Disclosure.
Features & Benefits

UDCI Policy covers the following:

Allegations of Unauthorized Disclosure which is not a Willful Disclosure by an Employee, or an Associated Third Party including former employees, subcontractors, other entities indemnified by the Named Insured or are under control of the Named Insured, then the Policy acts as pure insurance.

If an Employee is found or discovered to have committed a Willful Disclosure and the Disclosure took place more than three (3) years from the effective date of hiring, or the Civil Proceeding began less than one (1) year after the Disclosure, then the Policy acts as pure insurance.

If an Employee is found or discovered to have committed a Willful Disclosure and the Disclosure took place less than 3 years from the effective date of hiring, or the Civil Proceeding began less than 1 year after the Disclosure, the Policy acts as a bond and must be repaid by the Named Insured within 1 year of the end of the Civil Proceeding.

If an Employee is found or discovered to have committed a Willful Disclosure and the Disclosure took place less than 3 years from the effective date of hiring, or the Civil Proceeding began less than 1 year after the Disclosure, then the Policy acts as a bond and must be repaid by the Named Insured within 1 year of the end of the Civil Proceeding.

Claim Information

Under the Unauthorized Disclosure Policy the Insured may invoke the policy by 1) notifying the Company of the Unauthorized Disclosure and other relevant facts by completing a claim form provided by the Claims department; and 2) providing the Company with a favorable opinion letter from independent IP counsel rendering a favorable opinion concerning the likelihood of successfully defending the action for Unauthorized Disclosure.

Upon compliance with the policy terms, the Company will then authorize the suit and the policy will begin to reimburse the Insured for the Litigation Expenses.

The Policy Holder controls the lawsuit; however, the Company may suggest reliable and preferred counsel to the Insured but the Insured ultimately chooses. Counsel must adhere to litigation and billing guidelines set forth by the Company to ensure the full value of the policy. The Insured dictates the settlement terms, if any.

 

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