Travelers Bond Extends Liability Policy For HIPAA Penalty Coverage

August 20, 2003 ( - Travelers Bond has extended its fiduciary liability policies to provide a sublimit coverage for civil fines and penalties assessed under the Health Insurance Portability and Accountability Act (HIPAA).

Travelers Bond’s new endorsement to its fiduciary liability insurance policies specifically provides coverage for civil penalties assessed under HIPAA.   Following the April 14, 2003 deadline for compliance with the HIPAA Privacy Rule (See  “Tell” Tales: HIPAA enters penalty phase ), violations can result in civil penalties of up to $100 per violation, and up to as much as $25,000 per year, according to a news release.

The endorsement is available on:

  • Fiduciary Liability PLUS+
  • Travelers Bond’s stand-alone fiduciary liability policy
  • fiduciary liability coverage under The WRAP or The Advantage – Travelers Bond’s executive liability package policy and the package policy for financial institutions.

More information is available at .