Product aims to protect customers from problems with outsourced IT firms
Willis has announced its latest offering to help mitigate risk for financial institutions and other companies that outsource systems technology.
The new Willis Vendor Insurance Program, the only product of its kind available, allows companies to set standards for the insurance of their technology vendors and provides a risk transfer solution purchased by the IT vendor that can protect both itself and their customer from liability arising from the services provided.
The product was launched at last week’s American Bankers Association (ABA) Insurance Risk Management Conference in Indian Wells, California.
John Bayeux, Financial Institutions Practice leader and executive vice president at Willis, said: “Many of our clients have come to us saying that they are having difficulty in securing proof that their outsourced IT vendors are in compliance with their contractual responsibility to carry professional Iiability insurance.
"Our challenge was to address an industry-wide vulnerability that also created financial risk for the institutions using those vendors.
“Offering this new and innovative approach to managing unmitigated risks from vendors underscores our commitment to serving our clients’ needs.”
The Willis Vendor Insurance Program can cover claims related to network management, website or data centre operations, security services and other technology services provided by vendors, including breaches of customer data, intellectual property infringements and other losses.
Enhanced professional liability terms include coverage for network security liability, privacy liability, and software copyright coverage. While originally intended primarily for financial institutions, this coverage also has applicability for companies in the technology, retail and life sciences industries.
