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New First of its kind coverage feature in Downstream

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May 12, 2016

It’s official; as of May 1, and retroactively applying to all existing policies, Downstream Data Coverage, the professional liability policy created by NAID specifically to address unique industry exposures, includes two new protections.

The policy now explicitly covers damages from the acts of rogue employees. The overwhelming majority of such policies exclude damages from the intentional acts of employees. While Downstream previous held out that intentional acts were covered under its negligence provisions, the new language removes any uncertainty that intentional acts are covered.

In addition, Downstream has added unique coverage, which, to the association’s knowledge cannot be found elsewhere - no fault coverage for successful legal defense.

Professional liability also generally covers legal defense for false claims which is very important. No business expects to pay for false claims made against it, however, in today’s world, false accusations are a very real threat. 

The 'no fault’ provision of Downstream states that if the policyholder is exonerated by legal defense, the deductible is refunded. The policy holder thereby pays nothing if the claim is proven false.

For more information on Downstream Data Coverage contact NAID CEO Bob Johnson at The policy is only available to NAID Certified service providers.