Arbella's endorsement responds to the proliferation of smart technology, which has revealed a mounting demand for cyber liability protection in the personal lines and homeowners insurance markets.
PRODUCT: Home Cyber Protection
COMPANIES: Arbella Insurance Group and Hartford Steam Boiler Inspection and Insurance Company
BEST RATING: A- (Excellent)
AVAILABILITY: Coverage is available through Arbella-appointed agents.
FOCUS: At present, over 21.8 million residences in North America are considered “smart homes”—and that number is expected to reach 73 million by 2021, according to Arbella.
Coupled with the growing severity of cyber incidents and an increase in the sophistication of attacks, the proliferation of smart technology reveals a mounting demand for cyber liability protection in the personal lines and homeowners insurance markets.
“Homes are more connected than ever before,” says Jim Hyatt, senior vice president of personal lines, Arbella Insurance Group. “With all these connections that make life easier, we’re more vulnerable to a range of new cyber risks and crimes.”
Arbella’s new Home Cyber Protection policy is designed to “protect families and individuals after a cyberattack or if cyberbullying has occurred and help them recover both financially and emotionally,” Hyatt explains. “We’re proud to offer this affordable product and believe agents and customers alike will see the value in this type of insurance.”
COVERAGE DETAILS: Home Cyber Protection is available as an endorsement to Arbella’s homeowners, condominium and renters insurance policies. In the event that private personal data entrusted to a household resident is compromised in a data breach, the endorsement will service affected individuals in a number of ways.
The endorsement seeks to recover data and restore systems that have been lost or damaged due to a cyberattack, including attacks involving malware, unauthorized access, use of owned or leased computers, mobile devices, and connected home devices such as appliances or thermostats.
Other coverage features include payments and professional assistance in response to cyber extortion demands and reimbursement for online fraud that results in a direct financial loss. The policy will also repay the costs an individual may incur as the victim of a cyberbullying attack, such as temporary relocation expenses and professional cybersecurity consultation services.
UNDERWRITING: No special underwriting requirements or application processes are required.
MINIMUM PREMIUM: $25,000 limits are available for $42 per year and $50,000 limits can be purchased for $52 per year.
TARGET: Families that are vulnerable to a cyberattack, cyber extortion, online fraud, data breach and cyberbullying.
COVERAGE AVAILABILITY: Home Cyber Protection is currently available in Massachusetts, with plans to roll out the product in Connecticut soon.
COVERAGE TERRITORY: Worldwide.
CONTACT: Jim Hyatt, senior vice president of personal lines; Arbella Insurance Group, 1100 Crown Colony Drive, Quincy, MA 02169.
Will Jones is IA assistant editor.
