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Online privacy violations fall under employment practices liability coverage

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Most litigation that alleges employers have breached workers' or job applicants' privacy by accessing or using online information about them would fall under firms' employment practices liability insurance, experts say.

“I can say without a doubt it's not covered by the vast majority of cyber polices in the market” that cover theft or unauthorized disclosure of private information, said Nicholas Economidis, Philadelphia-based underwriter for professional liability lines at Beazley P.L.C.

However, if a prospective worker fills out a job application and puts down his driver's license number, which leads to its unauthorized disclosure, “that would be covered by a cyber liability policy,” Mr. Economidis said.

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