Protecting equipment against breakdown in the 21st Century must encompass protecting machinery against direct physical damage caused by cyber events.
When cybercriminals attack a business, they can access more than the data needed to run the business or the personal information of employees and customers. In our increasingly connected world, they may also access control of equipment that is the heart of the business.
Businesses are connecting devices and equipment to each other and to the internet. This connectivity enables businesses to run more smoothly and efficiently.
That means, however, that once into a computer system, hackers may have access to everything connected to it. That can include electrical, manufacturing, refrigeration, HVAC and security equipment. If hackers physically damage this connected equipment, is the business protected?
While business owners understand their responsibility to protect their enterprise against cyberattacks, it's important for them to know what exactly is covered in a cyber liability policy and what coverage will help them best protect their critical connected equipment.
What Does Cyber Liability Insurance Cover?
Cyber liability coverage focuses on information security exposures. It helps pay for:
- Costs associated with computer restoration and data recovery.
- Third-party liabilities a business might have as a result of a failure of system security.
What Does Equipment Breakdown Insurance Cover?
Equipment breakdown insurance covers sudden and accidental physical damage to equipment. If a cyberattack causes such direct physical damage to equipment, that is a covered cause of loss under HSB's TechAdvantageTM policy. Once coverage is triggered, any coverages within the policy, such as property damage, business interruption and extra expense, can be applied to the loss.
It's important to note that not all equipment breakdown policies are the same. There is a trend in the industry to add cyber exclusions to many insurance policies. For instance, some have an electronic vandalism exclusion. HSB TechAdvantageTM does not. We believe that protecting equipment against breakdown in the 21st century must encompass protecting machinery against direct physical damage caused by cyber events.
Get Critical Protection Fast by Quoting with Appulate
Now, agents can quickly protect their clients with HSB's equipment breakdown and cyber products. We've partnered with Appulate, a digital technology for property-casualty insurance, which lets agents upload ACORD data directly to get an instant rate and quote for HSB Total Cyber™ and HSB TechAdvantageTM insurance policies. If the quote is accepted, the agent can also bind online to complete the transaction. Check out these step-by-step instructions to see how easy it can be.
It's free for agents to register and use Appulate. The streamlined process reduces data entry and saves agents time. Register and sign in here.
It's never been easier to rate, quote and bind both Equipment Breakdown and Cyber coverage—protection that is more critical than ever for businesses today.
© 2021 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. This article is intended for information purposes only and does not modify or invalidate any of the provisions, exclusions, terms or conditions of the policy. For specific terms and conditions, please refer to the coverage form.