Early this month, XL Insurance unveiled a new electronic-data-destruction coverage enhancement to a pollution policy for e-waste recyclers.
The new enhancement adds privacy protection to the insurer's pollution and remediation legal liability (PARLL) policy.
Specifically, it provides e-waste recycling companies with third-party coverage against claims resulting from an act, error or omission by reason of a theft, unintentional disclosure, misappropriation, misuse or mishandling of personally identifiable information contained within electronic data that is in the recycler's possession for electronic-data destruction.
Rich Corbett, president of XL Insurance's North America Environmental operations, believes the layer of privacy-liability protection is not currently offered elsewhere to the electronics-recycling industry. “Not only does this coverage protect an e-recycler, but it also provides an added layer of confidence to their customers who are assured that their electronic data will be properly destroyed in the recycling process,” he says.
In a statement unveiling the coverage, Corbett notes that in the United States, “an estimated 400 million electronic units are discarded each year, creating an ever-growing stream of e-waste.”
“As many electronics contain lead, mercury, cadmium and other pollutants, it's an environmental issue of growing concern, prompting many states to take action,” he says, adding that 24 states have adopted e-waste legislation banning the disposal of such items in the waste stream.
“While these laws present business opportunities for recyclers, these businesses have to be prepared and properly protected to take advantage of them because in addition to toxic chemicals, discarded electronics may also contain individuals' or business' proprietary information that also has to be handled appropriately,” he says.
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