Half of the businesses victimized in a cyberattack are forced to close their doors within six months. With HSB Total Cyber™, Hartford Steam Boiler enters the middle market to provide affordable cyber coverage for midsize companies.
PRODUCT: HSB Total Cyber™
COMPANY: The Hartford Steam Boiler Inspection and Insurance Company, a division of Munich Re
BEST RATING: A++ (Superior)
AVAILABILITY: Coverage is available through independent agents and brokers.
FOCUS: Small and midsize businesses are not only “the principal target” of cyber criminals, but “even more disconcerting is the fact that cybercrime represents an existential threat” for them, says Luis A. Aguilar, commissioner of the U.S. Securities and Exchange Commission (SEC). The SEC estimates that half of the businesses victimized in a cyberattack are forced to close their doors within six months.
Hartford Steam Boiler (HSB) has been writing identity recovery coverage since 2005, data compromise coverage since 2007 and its CyberOne™ coverage since 2014. With HSB Total Cyber™, the company enters the middle market to serve companies that “find themselves squeezed between expensive cyber policies designed for big organizations and low-cost insurance packaged for small businesses,” says Tim Zeilman, vice president, strategic products.
Affordable coverage for midsize companies is increasingly important, Zeilman says, as “larger companies are also imposing contractual obligations on contractors and suppliers, which require midsize companies to carry cyber insurance and improve cyber defenses to protect the larger firms from hackers.”
UNDERWRITING: HSB Total Cyber is a single policy that includes a variety of essential coverages designed for midsize companies. It is written on an account-by-account basis and includes the flexibility to provide only those coverages the client needs. Limits are typically $1 million to $5 million, but higher limits are available.
The first three HSB Total Cyber coverages address data breach risks: data breach response expenses, to cover notifications and monitoring or other services; identity recovery, to pay for expenses and expert help for a victim to restore credit standings and identity records; and data breach liability, to cover litigation and settlement for victims affected by a breach who bring a claim or a lawsuit against the insured. It also covers actions, claims or lawsuits from government authorities.
Two additional coverages offer broad protection for losses from cyberattacks or threat of attack: computer attack coverage for data restoration or recreation, system restoration, loss of business and payment for professional public relations services to manage the insured’s reputation; and cyber extortion coverage, which pays the amount demanded of an insured under threat of a computer system attack, as well as the cost of an investigator.
HSB Total Cyber also covers defense and settlement costs for two other cyber liability exposures: network security liability for claims in which “negligent failure of computer security” caused third-party damage; and electronic media liability for when a claimant alleges that information displayed electronically on a website infringes on or violates their rights, or defames them.
MINIMUM PREMIUM: None.
TARGET: The ideal prospect is a midsize organization with $10-150 million in annual revenue that is seeking comprehensive cyber coverage. The company will also underwrite businesses with revenues up to $250 million.
COVERAGE TERRITORY: U.S.
CONTACT: Tim Zeilman, vice president, strategic products; The Hartford Steam Boiler Inspection and Insurance Company; 1 State Street, Hartford, Connecticut 06102-5024; 860-722-5162.
Ronimarie Acord is an IA contributor.
