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Downstream insurance popularity continues to rise

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Nov. 19, 2014

As customers increasingly transfer liability to their data related service providers, it is not surprising that NAID certified members are turning to Downstream Data Coverage to address that need and act as a competitive edge.

“Whenever a contract mentions liability or indemnification, it provides an opportunity to educate them on how Downstream differs from other professional liability,” said NAID CEO Bob Johnson. “As customers are warned of the problems of traditional insurance, it makes it more difficult to pass off inadequate policies creating an unanswerable competitive advantage.”

“Were happy early adopters are getting a competitive advantage,” said Tom Simpson, the chair of the board overseeing Downstream. “But the most important aspect of the coverage is that provides true indemnification for both service providers and their customers. That was the problem we set out to solve and it is rewarding to see members taking advantage of it.”

When asked if he believes Downstream will continue to grow, Johnson said it is a safe bet.

“We have maintained all along that it will eventually be impossible to be in the secure destruction business without proper professional liability coverage,” said Johnson. “Once we get enough members participating and can offer the lower premiums, Downstream will be an even more attractive solution.”

NAID certified members interested in Downstream Data Coverage should contact Johnson directly at rjohnson@naidonline.org.