PRODUCT: Data Breach endorsement

COMPANY: The Hartford (admitted)

BEST RATING: A

AVAILABILITY: The Hartford distributes policies through brokers and its network of appointed independent agents. For information on a possible company appointment, contact a new appointment consultant at 877-853-2582, ext. 5601.

FOCUS: The Hartford, a leading provider of Data Breach coverage since 2011, calls on agents to help their small business clients understand data breach exposures, adding new data breach endorsements to its business owner policy SPECTRUM. The Hartford recently introduced online tools agents can use to help small business owners assess data breach exposures stemming from the personal data they collect and store, explains Lynn LaGram, assistant vice president of small commercial underwriting. The company believes the data breach endorsements can help producers sell more SPECTRUM policies and better serve the overall coverage needs of small accounts.

UNDERWRITING: The Hartford sells data breach endorsements to those that purchase the company’s SPECTRUM policy. These optional coverages provide protection on a primary-basis only. One endorsement covers first-party data breach claims for expenses arising from a loss, theft or accidental release of personal data such as credit card numbers, driver’s license numbers and patient medical history in both paper and electronic file formats. Response expenses for first-party coverage could be for legal and forensic services, notification to affected customers and employees, crisis management public relations/advertising services and credit monitoring services.

SPECTRUM’s other coverage extension delivers third-party liability, including court awards and settlements stemming from a data breach. Producers can arrange the addition of first-party coverage to SPECTRUM by itself without third-party protection. First-party aggregate limits range from $10,000 to $100,000, and from $15,000 to $500,000 for third-party coverage exposures. First-party coverage deductibles range from $1,000 to $2,500. There are no deductibles for third-party liability. Claims-made policy forms are used for third-party liability. Defense costs are covered within policy limits. Punitive damages are excluded.

MINIMUM PREMIUM: Varies by the type and volume of personal information being collected by the insured.

TARGET: Target industries for the endorsement are health care, financial services firms, insurance agents and brokers, accountants and lawyers.

COVERAGE TERRITORY: All states except AK and HI.

CONTACT: Lynn LaGram, assistant vice president of small commercial underwriting; One Hartford Plaza, Hartford, CT 06155; 860-547-9685.