[January 28, 2013]

ACE USA Expands Privacy Protection with Unique Data Breach Fund Sidecar

ACE USA, the U.S.-based retail operations of the ACE Group, today announced a ground-breaking option for ACE Privacy Protection policyholders, through enhancements to its industry leading Data Breach Team Endorsement. The new Data Breach Fund Sidecar Endorsement eliminates tiered sub-limits and provides a single data breach fund limit, one that falls outside the policy's liability limits for all data breach expenses. The ACE Data Breach Team is a panel of independent legal, computer forensic, notification, call center, crisis communications, fraud consultation, credit monitoring, and identity restoration firms. For the first time, policyholders can obtain both the ACE Data Breach Team and a single data breach expense limit, separate from the policy's liability limit - an option that is unequaled in the marketplace.

"ACE recognizes that small and mid-size organizations have a need for a robust post-breach response, and the ACE Data Breach Team is especially qualified to address these needs through our experienced data breach coach, superb vendors, and industry-focused expertise," said Toby Merrill, Vice President, ACE Professional Risk. "This is the first and only sidecar program to address data breaches, and we're excited to be able to announce it on Data Privacy Day."

Michael Tanenbaum, Senior Vice President, ACE Professional Risk, added, "Organizations face significant liability when confidential client or proprietary information is lost or compromised. With the introduction of the Data Breach Fund Sidecar Endorsement, ACE provides expanded coverage for our policyholders, including taking data breach expenses outside of the policy limit."

ACE Professional Risk helps firms mitigate the financial and reputational risks associated with privacy breaches. The ACE Data Breach Team, combined with one of the Data Breach Team Endorsement options, bridges the gap between risk transfer and purchased loss control, creating a comprehensive risk management program for privacy, data breach, and network security risk.

Data Breach Team Endorsement enhancements include:

• Coverage for Regulatory Communications, including:
  • Payment for legal services to communicate with a regulator before a formal investigation
  • Coverage for the Data Breach Coach or another law firm on the Data Breach Team panel
  • Self-insured retention for a Regulatory Proceeding, which is eroded by Regulatory Communications coverage
• Forensics coverage, which now responds to any failure to protect Personal Information, and is no longer limited to network security failures

• All of the benefits already provided by the Data Breach Team Endorsement
• Expanded coverage for insureds with less than $1 billion in annual sales revenue
• Data Breach Fund Sidecar limit outside of the standard policy limits
• Sidecar limit intact, even when standard policy limits have been exhausted
• Tiered sub-limits removed, providing a single limit for all data breach expenses, including expenses incurred to retain services for: the Data Breach Coach, forensics, complying with Privacy Regulations, Regulatory Communications, legal services, notification services (statutory and voluntary), call center services, public relations, credit monitoring, identity monitoring, and fraud consultation
• Sidecar limit offered at 50 percent of the Privacy Liability limit on a standard basis (customers are able to purchase lower limits if requested)
• No retention for Data Breach Coach expenses
• Simplified structure to allow brokers and clients to build excess programs above ACE limits

ACE's Data Breach Fund Sidecar Endorsement offers the expanded coverage and services needed to help small and mid-sized organizations mitigate and manage the rising risk and expense of data breaches, creating a comprehensive risk management program for privacy, data breach, and network security risk.

ACE Professional Risk, a division of ACE USA, is staffed by a specialized team of innovative underwriters and provides management liability and professional liability products throughout the U.S. For more information about ACE Professional Risk and its range of products and services, please visit our website.

Product highlights are summaries only; please see the actual policy for terms and conditions. Products may not be available in all locations and remain subject to ACE Professional Risk's underwriting criteria. ACE USA shall not be a party to any agreement entered into between any Data Breach Team service provider and an ACE policyholder. It is understood that Data Breach Team service providers are independent contractors and are not agents of ACE USA. ACE USA assumes no liability arising out of any services rendered by a Data Breach Team service provider.

ACE USA is the U.S.-based retail operating division of the ACE Group, headed by ACE Limited, and is rated A+ (Superior) by A.M. Best Company and A+ (Strong) by Standard & Poor's. ACE USA, through its underwriting companies, provides insurance products and services throughout the U.S. Additional information on ACE USA and its products and services can be found at www.acegroup.com/us. The ACE Group is one of the world's largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.

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