Small Business, Big Risk: Main Street America Group Tackles Cyber

PRODUCT: cyber risk coverage for small businesses

COMPANY: The Main Street America Group (Hartford Steam Boiler)

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through appointed independent agents with main line BOP writing authority.

FOCUS: Cyber risks are huge for small businesses with both limited security and technical resources. And while sensational large-company breaches usually involve hacking information via the Internet, most small-business breaches occur via simpler means, such as stolen files or the accidental release of information.

“A sole proprietor artisan contractor who leaves personally identifiable information (PII) on the dash of their truck while at a job site has as much cyber exposure as a large company with a computer network and a human resources department that stores their company’s PII in paper files,” observes Dan Gaynor, vice president, head of commercial lines for The Main Street America Group.

Partnering with Hartford Steam Boiler, a company with experience in the cybersecurity field, The Main Street America Group now offers affordable cyber risk protection specifically designed for small businesses. “Computer viruses and other computer attacks can result in lost business income and expenses to restore systems and recover data—that’s why this coverage is so essential for ‘Main Street’ businesses,” Gaynor says.

UNDERWRITING: The cyber risk program provides coverages for three typical risks: loss of the business owner’s PII; data compromise, defined as the unintended loss or release of PII of the business’s employees, customers or clients; and unauthorized access, malware attack or denial of service attack on the business owner’s network or computers.

Coverage consists of three parts. The first is identity recovery, which includes identity theft case management services and expense reimbursement. The second is data compromise, which includes response expenses (first-party coverage—forensic information technology review, legal review, notification to affected individuals, services to affect individuals and public relations)—and defense and liability (third-party coverage).

The Main Street America Group calls the third part “CyberOne,” which includes computer attack (first-party coverage—data restoration, data recreation, system restoration, loss of business and public relations) and network security liability (third-party coverage—malware transmission, denial of service and third-party business information loss, release or disclosure).

The identity recovery option is $25,000 expense reimbursement and includes case management services. The data compromise option consists of $25,000 response expenses (first-party) and $25,000 defense and liability (third-party), with higher limit options available up to $250,000. First- and third-party coverages are not separable with data compromise.

CyberOne includes $50,000 and $100,000 limit options, with options of limited or full coverage. The Main Street America Group can write first-party computer attack coverage and third-party network security liability coverage independent of each other with CyberOne. This totals six available options for CyberOne coverage.

MINIMUM PREMIUM: None.

TARGET: The cyber risk program is incorporated within The Main Street America Group’s main line BOP program, which is specifically designed for businesses with 50 or fewer employees. But there are no limitations on the program by revenue or employee count. If the business risk classification is eligible for the main line BOP, it is also eligible for the cyber risk protection program.

The program is especially suitable for small professional offices because they tend to have a large concentration of PII in a contained location, according to the carrier.

COVERAGE TERRITORY: Currently available in AZ, CT, DE, IN, GA, ME, MD, MA, MI, MN, MS, NC, NV, PA, SC, TN, UT, VA and WI. Rollout of the program will continue through 2016 to states including FL, NH, OK, OR, NY, RI, SD and VT.

CONTACT: Dan Gaynor, vice president, head of commercial lines; The Main Street America Group, 4601 Touchton Road East, Suite 3400, Jacksonville, FL 32246; 904-380-7209.

Ronimarie Acord is an IA contributor.