2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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LMCIT's municipal liability coverage responds to claims for damages in the following scenarios: • City is sued for invasion of privacy or a data practices violation resulting from the actual or potential unauthorized access of private or confidential data stored in the city's computer system. • City employee uses city's email system for sexual,racial, or other harassment of another employee. • City employee subscribes to a job-related listsery where she or he comments about a vendor and gets sued for defamation. • City employee uses city's web access to view pornography; another employee sees it and sues the city on a hostile environment claim. • Hacker attack or virus disables the city's 911 or fire beeper system; the citizen whose house burns down sues the city for damages based on the city's negligent failure to safeguard its system. • City's website infringes on a copyright or trademark and the city is sued. • Hacker hijacks the city's email system and uses it in a"denial of service" attack on a company that sells products over the web, resulting in a substantial loss of sales. The target company sues the city for negligently failing to take reasonable steps to safeguard the city's system,which may have allowed the attack to occur. See Section II.D.1,LMCIT The LMCIT liability coverage also provides third-party coverage for liability primary liability limits. claims for data security breaches, subject to a$3 million aggregate. LMC information memo, First-party coverage for data breach claim mitigation and notification costs are LMCIT Property,Crime, Bond,and Petrofund provided through LMCIT's property coverage. That coverage provides costs Coverage Guide. to respond to a breach the member has or believes it has had, including legal and information technology consulting,providing notice to affected persons, credit monitoring and identity theft services, and similar things. C. Dams and downstream liability See Section II.C.2,Risks The LMCIT liability coverage contains an exclusion for damages arising out that must be specifically underwritten. of the failure or bursting of any dike, levee, or similar structure, as well as any Class I or Class II dam as classified by the commissioner of the Department of Minn.R.6115.0340. Natural Resources pursuant to Minnesota Rules. Upon request, LMCIT can review the downstream liability exposure for these types of structures and at times can remove the exclusion depending on the specific circumstances. 67