Hunton Insurance Recovery Blog

Part II of this series, Levels of Protection, addressed the levels of protection available under the SAFETY Act and their associated benefits. This post discusses how a company prepares and submits an application under the SAFETY Act to the Office of SAFETY Act Implementation (“OSAI”) and the important role outside counsel can play in that process.

This series addresses whether your company should consider protecting its products under the SAFETY Act, which serves as a governmental seal of quality and offers powerful litigation and liability benefits.  Part I of this series addressed the benefits of obtaining SAFETY Act coverage.  This post explains the levels of protection under the SAFETY Act and how your company should evaluate whether its products may be eligible.

The SAFETY Act is a highly effective risk management tool created to incentivize the development of anti-terrorism technologies—broadly defined—and to provide protections to providers of products and services meant to prevent or mitigate physical and cyber-attacks.  Among other benefits, companies receiving SAFETY Act coverage for their technologies have their potentially liability associated with an act of terrorism capped at the amount of insurance coverage required by the U.S. Department of Homeland Security (“DHS”).  Companies seeking to reduce their exposure to liability associated with cyber or physical attacks should consider applying for designation or certification under the SAFETY Act.  DHS has also approved a wide variety of other technologies and security programs for protection under the SAFETY Act. 

Recent headlines underscore the security challenges faced by public-facing businesses. From physical threats to cyber attacks targeting a wide range of critical infrastructure, companies in diverse sectors, such as the financial, retail, entertainment, energy, transportation, real estate, communications and other areas, face a challenging landscape of risks and potential liabilities. Join us on October 28, 2019, at 12:00 p.m. EST, for a webinar to discuss these issues, including why companies should consider SAFETY Act protection and how to obtain it.