One Stop Shopping For Your Insurance Needs ShredderGuardsm

1. One Stop Shopping For Your Insurance Needs ShredderGuardsm / RecycleGuardsm PSI Fall Conference – November 8 – 10, 2006

2. This program is designed to include companies who are in the business of the destruction of confidential information Target Businesses

3. Program Overview Written through the ACE Group of Insurance Cos. Property Inland Marine, including Warehouseman’s Legal Liability Crime General Liability Automobile Umbrella Pollution Liability- written on non-admitted basis under a separate policy Written through Wausau Worker’s Compensation Written through CNA Professional Liability

4. Program Overview- One Stop Shopping Through Your Local Insurance Agent Written through CNA Professional Liability Developed in conjunction with the National Association of Document Destruction (NAID). This product is designed to protect you against 3rd party claims of your real, or perceived negligence. ShredderGuard protects against losses due to: Unauthorized access to or theft of sensitive documents Intentional acts by an employee Negotiable instruments falling into the wrong hands Identity theft stemming from information on sensitive documents Violations of privacy, i.e. involving medical records Negative publicity from the release of sensitive documents Improper handling of documents required in a court hearing The policy has been specifically designed to include coverage which would not be covered under your General Liability Policy

5. Why Do I Need Professional Liability Coverage? Lawsuits against professionals are becoming more common Professionals may be held to a higher standard and thus be held accountable It sets you apart from your competition who does not carry the coverage It allows you to bid on jobs where coverage is mandatory It may be increasingly mandated as states enact laws which govern the handling of the destruction of confidential information

6. Claims Examples During his route, a truck driver for ABC Shredding removes a computer list, which contains confidential client information, from a secured container and sells it to a ring who intends to use it to commit identity theft. The name of the client and the shredding company are established during the investigation of the identity theft ring. The client is sued by their customers for breaching their confidentiality and damaging their credit ratings. The client sues ABC Shredding, based on the involvement of their driver. An employee of MNO Mobile Shred company spills the records from a financial institution on the ground in a parking lot. A reporter for a local TV station witnesses this. The wind is blowing hard enough that some of the documents get away. Later that afternoon the reporter recovers some of the documents outside the client’s building and broadcasts his discovery on the news. The financial institution sues the MNO Mobile Shred Company for failing to properly dispose of the documents, resulting in negative publicity and thus causing the institution to lose revenue. Because the bank cannot prove the damages, MNO is off the hook but the defense cost was $57,001

7. Benefits Industry Involvement- attendance at NAID trade shows and risk management presentations at association meetings- also work with the Paper Recycling industry so any crossover is understood and addressed Industry Specific Coverage- professional liability has been tailored to meet the needs of the document destruction industry, and close involvement with the association will ensure that the underwriters will be aware of any changes that occur in the industry that may necessitate adjustments to coverage

8. Benefits All Insurance Carriers Rated “A” or Better by AM Best CNA- One of the leading writers of Professional Liability in the United States with a staff of underwriters dedicated to providing responsive service ACE – ACE Westchester Specialty Group is one of the leading markets dedicated to providing solutions for industry specific programs Wausau- The first writer of Worker’s Compensation, beginning in 1911 with the knowledge and expertise to make a difference in claims handling and service

9. Benefits Centralized Claims Handling- Claims, other than Worker’s Compensation and Professional are handled by ACE in Chicago, allowing for continuity and expertise by adjusters CNA offers Expertise in Handling Professional Liability Claims- CNA’s professional liability claims staff includes attorneys who are dedicated and knowledgeable in their field Wausau Claims Handling- claims are handled by adjusters familiar with each jurisdiction. On Line reporting of claims Loss Control Specialists- loss control services are provided by a staff of consultants who understand the business

10. Accessing the Program Have your Insurance Agent contact: Monica McNally Willis of New Hampshire 1 New Hampshire Avenue, Suite 200 Portsmouth, NH 03801 Phone: 800 765-0634 Fax: 603 334-3090 or e-mail (monica.mcnally@willis.com)

11. ShredderGuardsm/ RecycleGuardsm Insurance Program