Grange Launches Cyber Policy for Standard Personal Lines Clients

PRODUCT: Home Cyber Protection

COMPANY: Grange Insurance, working with a third-party reinsurer

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through Grange-appointed agents, who can sell it with home, condo and renters policies.

FOCUS: Individuals, not businesses, lost over $360 million from compromised email, $59 million from data breaches and $58 million from identity theft in 2016 alone, according to the FBI Internet Crime Complaint Center.

In a national study Grange Insurance commissioned to measure consumer attitudes about cybersecurity, one in four consumers said they’ve been a victim of a cyberattack, but nearly one in five believe that doing more to protect themselves is too much of a hassle.

From cyberbullying to elaborate phishing schemes, consumers face increasing dangers that threaten their families’ financial and emotional wellbeing. But according to Grange’s research, the vast majority of consumers are unaware of what they can do to protect themselves against these threats.

“The rapid growth in connected home technology and smart devices is creating the increased need to protect data, systems and software from computer attacks,” says John North, president, personal lines, Grange. “Our new Home Cyber Protection coverage provides consumers with financial protection in many cases of cybercrime and provides access to experts who can help them fix the damage done.”

Although several options are available for personal cyber protection in the high net-worth space, “very few carriers are offering this coverage” for standard personal lines insureds, North points out. The goal: “to give people peace of mind as they go about their day-to-day online activities.”

COVERAGE DETAILS: For more than 10 years, Grange has provided coverage that helps restore an insured’s identity after an illegal breach. The new policy goes beyond that by providing coverage and assistance in a combination of areas, including:

  • Computer attack: removes malware and reprograms computers, tablets, Wi-Fi routers and other internet access points
  • Home systems attack: restores devices connected to the internet, including smartphones, thermostats, smart appliances, and security and monitoring systems
  • Cyber extortion: provides professional assistance on how to respond to a ransomware attack and pays ransom when approved
  • Online fraud: assists in losses due to phishing schemes, illegal bank and credit card transfers, forgery, counterfeit currency and other deceptions
  • Data breach: includes forensic IT and legal reviews, as well as notification and recovery services when private nonbusiness data entrusted to an individual is lost, stolen or published

UNDERWRITING: Coverage is available to customers with an active Grange home, condo or renters policy, regardless of the number of household members. Rating is “simple,” North says—all policies are charged a flat premium, and “individual risks are reviewed annually based on their loss activity.”

MINIMUM PREMIUM: N/A.

TARGET: “Because of the connected world we live in today, anyone can benefit from this coverage,” North says.

COVERAGE TERRITORY: GA, IL, IN, IA, KY, OH, PA, TN, VA and WI.

CONTACT: John North, president, personal lines; Grange Insurance, 671 S. High Street Columbus, OH 43206; 800-422-0550.

Jacquelyn Connelly is IA senior editor.