The Hartford Documents
The Hartford
Cyber Insurance 101
The Hartford
Cyber Insurance 101
The Hartford provides an overview of its cyber risk insurance offerings and the importance of such coverage in today’s digital landscape.
Cyber Risk Landscape
The document highlights the growing threat of cyber-attacks, noting:
- A 40% increase in global ransomware attacks over the last year.
- Phishing is responsible for 90% of ransomware attacks.
- The average ransom demand spiked to over $700,000 in Q2 2023, a 126% increase.
- Business email compromise (BEC) losses rose from $1.9B in 2020 to $2.7B in 2022.
CyberChoice Coverage
The Hartford’s CyberChoice policy offers comprehensive protection against cyber risks, including:
- Affirmative cyberterrorism coverage
- Incident response expenses, including voluntary notification
- Third-party service provider coverage
- Pre-claim investigation and prevention assistance
- Worldwide coverage territory
The policy is designed for various industries, including construction, entertainment, financial institutions, higher education, hospitality, manufacturing, retail, transportation, utility and energy, and wholesale distribution.
Value-Added Services
Policyholders gain access to:
- The Hartford Cyber Center: An online risk management portal with cybersecurity resources and employee training.
- 24/7 Cyber Claims Hotline: Guides clients through initial steps after a breach and assists with incident response and recovery.
- CyberChoice First Responders: A panel of professionals with expertise in cyber and breach response.
The Hartford’s Credentials
The Hartford emphasizes its standing in the industry:
- Ranked as the No. 3 Cyber Liability insurer
- Ranked as the No. 2 Professional Liability insurer
- Recognized as a “World’s Most Ethical Company®” 14 times by Ethisphere
Coverage Details
- Primary capacity for risks with revenues up to $500M
- Excess capacity for risks with revenues up to $1B
- Complete first and third-party cyber coverage included in the base form
The Hartford
Cyber Perception
The Hartford
Cyber Perception
The Hartford, an insurance company with over 200 years of experience, offers comprehensive cyber risk management solutions designed to help clients build resilience and minimize risk in an ever-changing cyber threat landscape. Their approach is characterized by flexibility, specialization, and a strong geographic presence.
Features of The Hartford’s Cyber Coverage
- Flexible Solutions: The Hartford provides standalone cyber coverage and options that blend cyber with Tech Errors & Omissions or Miscellaneous Professional Liability. They also offer excess capacity to meet diverse client needs.
- Broad Appetite: The company has an expansive appetite for cyber risks across various industries, with some exceptions such as in-patient healthcare, public entities, and K-12 education.
- Established Presence: With over 20 years of experience in Tech E&O policies, The Hartford has a well-established presence in the market, addressing a wide array of coverage needs.
- Specialized Expertise: The Hartford boasts experienced cyber underwriters and in-house claims handlers with the authority to manage a range of risks and provide quick turnarounds.
Risk Mitigation and Support
- Cyber Risk Mitigation Services: Insureds receive a network vulnerability scan and consultation access to The Hartford Cyber Center at no additional cost.
- Educational Resources: The Hartford offers a library of marketing materials, thought leadership articles, and webinars to help clients learn how to minimize cyber risk and build effective defense strategies.
- Dedicated Support: A team of dedicated underwriters is available to assist clients with tailored solutions to meet their specific needs.
Market Positioning
The Hartford positions itself as a comprehensive solution provider in the cyber insurance market. They address market needs such as:
1. Offering both cyber and technology coverage
2. Providing a broad appetite for cyber risks
3. Demonstrating a long-standing presence in the market
4. Offering specialized claims and underwriting knowledge
5. Providing cyber risk mitigation services
6. Offering guidance on evolving cyber risks
7. Providing direct access to a dedicated cyber team
By addressing these market needs, The Hartford aims to differentiate itself as a reliable and experienced partner in managing cyber threats for businesses across various industries.
The Hartford
Breach Response
The Hartford
Post-Breach Cyber-Response
The Hartford discusses the post-breach incident response process for businesses with a CyberChoice Secure Policy℠. It provides a step-by-step guide on what to do if a cyber breach occurs, emphasizing the importance of immediate action and the support provided by The Hartford.
Steps in Post-Breach Response
1. Immediate Reporting: The document stresses the importance of calling The Hartford’s 24/7 Cyber Incident Line as soon as a breach is detected.
2. Claims Professional Assistance: The Hartford’s experienced Claims professionals will explain coverage, recommend handling procedures, and help retain independent attorneys and vendors to deal with the breach effectively.
3. Forensic Investigation: A computer forensics expert can be consulted to investigate the breach, determining what happened, when it occurred, how it happened, and whether sensitive information was compromised.
4. Customer Notification: If necessary, The Hartford’s panel of professionals will assist in notifying customers, clients, or state regulators, including engaging crisis management services and coordinating service providers for various tasks.
5. Ongoing Support: The panel will provide assistance in monitoring customer responses, enrolling affected individuals in offered services, and providing transparent reports.
6. Legal and Regulatory Assistance: In case of lawsuits or regulatory investigations, The Hartford’s Claims Department and a panel of law firms will provide support in managing and defending these issues.
Post-Crisis Evaluation and Prevention
After the immediate crisis has passed, The Hartford emphasizes the importance of:
- Evaluating the cost of the event
- Recommending ways to tighten security
- Reducing vulnerabilities that led to the breach
- Ensuring continuous protection of important assets
The Hartford stresses that experiencing one breach doesn’t preclude the possibility of future incidents, highlighting the need for ongoing vigilance and protection.
The Hartford
Claims: Real Life
The Hartford
Claims Scenarios: Real Life
The Hartford presents various cybersecurity scenarios and their potential insurance solutions, highlighting the importance of comprehensive cyber risk management for businesses of all sizes.
Scenario 1: Remote Theft at the Check-out
A small business providing point-of-sale terminals faced a breach where criminals accessed a client’s sales terminals using employee credentials. This resulted in customer notifications and an indemnification claim.
Scenario 2: Ransomware Attack
A regional accounting firm experienced a ransomware attack that blocked system access and deleted files. This led to missed tax filing deadlines and reputational damage.
Scenario 3: White Hat Hacker
A small company with an online sales platform was blackmailed by a hacker who discovered a security flaw. The company had to migrate data to a new platform to prevent future incursions.
Scenario 4: HR Imposter
A construction company fell victim to a phishing scam where an impersonator obtained employee W2 forms, necessitating credit and identity monitoring services for affected employees.
Scenario 5: Facebook Invasion
A technician at a laptop repair center accessed a customer’s Facebook account, posting explicit photos. This resulted in a multi-million dollar settlement and an indemnification claim.
Scenario 6: Carpetbaggers
A carpet factory’s employee unknowingly activated cryptowall malware, leading to production halts, data loss, and significant brand damage.
Scenario 7: Deep Freeze
An online travel reservation company experienced a network freeze due to a coding error during system upgrades, resulting in lost revenue and customers.
Scenario 8: Double Trouble
A bank faced a combined DDoS attack and data breach, leading to customer data exposure, regulatory investigations, and a class-action lawsuit.
Insurance Solutions
The Hartford suggests various insurance coverages to address these scenarios, including:
- Data Privacy and Network Security Liability
- Privacy Regulatory Matters
- Incident Response Expenses
- Cyber Extortion Loss
- Network Restoration Expenses
- Business Interruption
- Media Liability
- System Failure for Administrative Error
In Summary
1. Cybersecurity incidents can arise from various sources, including employee errors, malicious attacks, and system failures.
2. Cyber incidents’ financial and reputational impacts can be severe and long-lasting.
3. A comprehensive cyber insurance policy can help mitigate the costs and damages associated with these incidents.
4. Businesses should consider a multi-faceted approach to cyber risk management, including preventive measures and insurance coverage.
The Hartford emphasizes the importance of being prepared for a wide range of cyber threats and having appropriate insurance coverage to protect against potential financial losses and liabilities.
The Hartford
Claims: Tech E&O
The Hartford
Claims Scenarios: Technology E&O
The Hartford outlines various claim scenarios related to technology professional, media, and cyber risk coverage offered. It demonstrates the need for comprehensive insurance solutions for technology companies, highlighting potential risks and associated expenses.
Claim Scenarios
Scenario 1: Professional Liability – Software Company
- Cause: Negligence/failure to perform
- Situation: Software upgrade causes fare system failure for a transportation authority
- Damages: Lost revenues, extra expenses, reputational harm
- Resolution: Claim expenses over $25,000, settled for $300,000
Scenario 2: Professional Liability – Software Developer
- Cause: Negligence/failure to perform
- Situation: Workforce management software functionality failure
- Damages: Over $700,000 alleged
- Resolution: Claim expenses over $50,000, settled for $250,000
Scenario 3: Intellectual Property Infringement
- Cause: Copyright infringement of software code
- Situation: Competitor alleges product infringement
- Damages: Over $100 million alleged
- Resolution: Claim expenses exceeding $5 million
Scenario 4: Security Breach/Unauthorized Access
- Cause: Failure to prevent disclosure of personally identifiable information
- Situation: Website security elements left disabled after maintenance
- Damages: Lost customers, notification costs, credit monitoring expenses, regulatory proceeding expenses
Scenario 5: Professional Liability – Telecommunications Equipment Manufacturer
- Cause: Negligence
- Situation: Installation problem traced to company’s schematics
- Resolution: Claim expenses $5,000, indemnity $225,000
Takeaways
- The Hartford emphasizes the importance of cybersecurity threat protection for tech companies.
- It showcases The Hartford’s FailSafe® coverage and cyber services portfolio.
- The scenarios cover various types of claims: professional liability, intellectual property infringement, and security breaches.
- Claim resolutions often involve significant expenses and settlements.
- The Hartford offers a range of products and services for technology companies, including the Coverage Analyzer, Cyber Services Portfolio, and Cyber Center.
The Hartford
Claims: Technology
The Hartford
Claims Scenarios: Technology Industry
The Hartford outlines various real-world scenarios where technology companies faced significant financial impacts due to cyber threats and data privacy issues. Each scenario highlights the type of claim, the issue at hand, the type of insured company, the facts surrounding the incident, the challenges faced, and the resolution of expenses incurred.
Scenario 1: Ransomware Attack
- Type of Claim: Cyber extortion threat
- Insured: Hosting/connectivity service provider
- Facts: A company providing hosting and connectivity solutions faced a credible ransomware threat, leading to an extortion payment.
- Challenge: The company incurred $25,000 in cyber extortion expenses.
- Resolution: Total first-party expenses were $25,000.
Scenario 2: Data Privacy Breach
- Type of Claim: First-party data privacy loss
- Insured: Computer hardware manufacturer
- Facts: Security elements were disabled during network maintenance, leaving customer data unprotected. Although no breach was detected, data privacy laws were violated.
- Challenge: The company faced $300,000 in notification expenses, $700,000 in credit monitoring expenses, $300,000 in legal expenses, and $75,000 in crisis management expenses.
- Resolution: Total first-party expenses exceeded $1.3 million.
Scenario 3: Improper Data Disclosure
- Type of Claim: First-party data privacy loss
- Insured: Software developer
- Facts: Unauthorized access led to the disclosure of nonpublic personal information for 1,000 individuals.
- Challenge: The developer incurred $15,000 in notification expenses, $35,000 in credit monitoring expenses, and $7,500 in cyber investigation expenses.
- Resolution: Total first-party expenses were over $50,000.
Scenario 4: Lost Data Tape
- Type of Claim: First-party data privacy loss
- Insured: Custom software developing and consulting firm
- Facts: A backup data tape containing personal information was lost.
- Challenge: The firm incurred $30,000 in notification expenses and $70,000 in credit monitoring expenses.
- Resolution: Total first-party expenses were $100,000.
Scenario 5: Business Interruption Due to Ransomware
- Type of Claim: Business interruption
- Insured: Technology manufacturer
- Facts: A ransomware attack caused business interruption.
- Challenge: The manufacturer incurred costs including $867,000 for business interruption, $40,175 for forensic expenses, $3,960 for legal costs, and $112,536.68 for data restoration.
- Resolution: All expenses were reimbursed under a Tech E&O policy with a First Party Expense endorsement.
These claim scenarios illustrate the significant financial risks associated with cyber threats and data privacy issues within the technology industry. The Hartford provides coverage options to mitigate these risks for their clients.
The Hartford
Cybersecurity Protection
The Hartford
Cybersecurity Protection Package
The Hartford outlines its comprehensive cybersecurity protection package for businesses. This holistic approach to cyber risk management encompasses five key areas:
Identify Your Risks
The Hartford provides cybersecurity performance ratings and access to cyber experts who can help organizations review and prioritize their privacy and cybersecurity strategies.
Protect Your Organization
Policyholders can strengthen their cybersecurity posture by utilizing employee training, cyber risk management resources, periodic advisories, and webinars.
Detect Threats
The package includes tools to examine an organization’s dark web exposure and utilizes artificial intelligence (AI) to protect systems from cyberattacks.
Respond
In the event of a breach, policyholders have access to The Hartford’s CyberChoice First Responders and a 24/7 Cyber Claims hotline.
Recover from Cybersecurity Incidents
The Hartford offers assistance from third-party cyber extortion and data recovery specialists to help businesses quickly return to normal operations after a cybersecurity incident.
The Hartford emphasizes that its cyber risk protection is designed to be as diligent and resilient as the cyber threats businesses face. It offers a wide spectrum of cybersecurity best practices and resources, including training and education, with the goal of reducing a company’s risk while allowing it to focus on its core business activities.
For CyberChoice and FailSafe policyholders, The Hartford provides a broad array of cyber risk mitigation tools and services, addressing the specific needs of each business. This end-to-end solution sets The Hartford apart from other insurance carriers, as illustrated in a comparison table in the document.
It’s important to note that while The Hartford offers access to third-party service providers for cyber-related services, these vendors are not affiliates of The Hartford. Policyholders are not required to use these services, and any information shared with these vendors is at the policyholder’s discretion.
The Hartford
CyberChoice 1st Response
The Hartford
CyberChoice First Response
The Hartford’s CyberChoice First Response is a comprehensive cyber coverage solution for small businesses. This program offers a seamless process for quoting and binding cyber insurance policies, with the following features:
Program Highlights
- Broad industry appetite, targeting sectors such as Construction, Manufacturing, Professional Services, Retail, and more
- Combined first-party coverage and third-party liability in a single standalone cyber form
Admitted in most states - Limits up to $5M, with certain sublimits applying
- Automated limits up to $2M in the Pronto quoting/binding system
- Suitable for businesses with revenues up to $250M
- Auto-renewal eligible, subject to underwriting guidelines
Coverage Overview
Cyber Third-party Liability:
- Defense and Damages
- Data Breach and Privacy Lawsuits
- Network Interruption Lawsuits
- Fines and Penalties
- Data Breach Fines and Proceedings, PCI Fines and Assessments
Cyber First Party:
- Data Breach Response Expense
- Business Interruption Loss and Dependent Business Interruption
- Cyber Extortion, including Ransomware Response and Negotiation
Additional Coverage by Endorsement:
- Cyber Crime, including Funds Transfer Fraud and Social Engineering
- Utility Fraud (Cryptojacking)
- System Failure and Dependent System Failure
- Voluntary Shutdown
- Telecommunications Fraud
- Computer Hardware (Bricking)
- Reputational Harm
Coverage Highlights
- Affirmative Cyberterrorism coverage
- Pre-claim investigation and prevention assistance
- Worldwide coverage territory
- Incident Response Expenses, inclusive of voluntary notification
- Third-party service provider coverage
Additional Program Benefits
- Access to The Hartford Cyber Center
- Complimentary Risk Mitigation Services
- Dedicated Cyber underwriting team
- Specialized Cyber claims counsel and 24/7 cyber incident hotline
The Hartford
CyberChoice Secure
The Hartford
Cyberchoice Secure
The Hartford outlines its cyber risk insurance program, which offers comprehensive protection and services for businesses facing cyber incidents. This insurance solution is designed to support business continuity when cyber-related issues occur.
Underwriting Expertise:
The program is backed by experienced underwriters with specialized knowledge in cyber exposures across various industries. This expertise allows for:
- A better understanding of cyber risks faced by businesses
- Offering market-leading coverage tailored to client needs
- Significant authority to handle a wide range of risks
- Quick turnarounds for efficient service
Program Highlights:
- Eligible company categories include construction, entertainment, financial institutions, higher education, hospitality, manufacturing, retail, transportation, utility and energy, and wholesale distribution
- Complete first and third-party cyber coverage included in the base form without additional endorsements
- Primary capacity for risks with revenues up to $500 million
- Excess capacity for risks with revenues up to $1 billion
Coverage Details
The Hartford’s cyber risk insurance offers extensive coverage, including:
- Broad definition of personally identifiable information, both electronic and printed
- Unlimited notification coverage for qualifying companies
- Privacy regulation proceedings and fines coverage at full policy limits
- PCI fines and assessments coverage up to full policy limits
- Rogue employee and third-party service provider coverage
- Business interruption coverage for cyber attacks, system failures, and voluntary shutdowns
- 24-month coverage period for business interruption loss and other first-party cyber coverages
- Cyber deception loss and telecommunication loss coverage
- Optional reputational loss and bricking coverage
Additional Benefits:
- Carve-back to war exclusion for cyber attacks, cyber extortion demands, and privacy breaches
- Affirmative allocation provision with a 70/30 hammer clause
- Settlement for amounts up to 50% of retention without prior consent
- Pre-claim investigation and claim prevention assistance coverage
- Punitive damages coverage where insurable
- Worldwide coverage territory
- Cyber risk mitigation tips and incident response guidance included with the policy
In summary, The Hartford’s cyber risk insurance program offers a comprehensive solution for businesses seeking protection against cyber incidents, with tailored coverage options, experienced underwriting, and specialized support to address the evolving landscape of cyber risks.
The Hartford
CyberChoice Tech E&O
The Hartford
CyberChoice Tech E&O
The Hartford discusses its CyberChoice Tech E&O insurance coverage, specifically designed for businesses in the technology sector. This comprehensive policy offers customized cyber protection tailored to tech companies’ unique needs.
Program Overview
The CyberChoice Tech E&O policy combines multiple coverages into a single policy, including:
- Technology liability
- Media liability
- First and third-party cyber coverage
- Professional services liability
The program caters to various technology product and service companies, such as:
- SaaS, IaaS, and PaaS providers
- IT services and cybersecurity firms
- Big data and predictive analytics companies
- Social media platforms
- Telecommunication and ISPs
- Information technology hardware manufacturers
Coverage Highlights
The policy offers extensive protection with several key features:
- Broad definition of technology products and services
- Enterprise media liability coverage
- Privacy regulation proceedings and fines coverage at full policy limits
- PCI fines & assessments coverage up to full policy limits
- Business interruption coverage for cyber attacks, system failures, and voluntary shutdowns
- 24-month coverage period for business interruption and other first-party cyber coverages
- Cyber deception loss and telecommunication loss coverage
- Optional reputational loss and bricking coverage
- Worldwide coverage territory
Additional Benefits
The CyberChoice Tech E&O policy also includes:
- Pre-claim investigation and claim prevention assistance
- Punitive damages coverage where insurable
- Cyber risk mitigation tips
- Claim notice and incident response guidance are attached to the policy
- Easy-to-read policy form with linked definitions
Capacity and Eligibility
- Primary capacity for risks with revenues up to $500 million
- Excess capacity for risks with revenues up to $1 billion
The Hartford
Cyber Services
The Hartford
Cyber Services Portfolio
The Hartford discusses its comprehensive approach to cyber risk management, based on the NIST Cybersecurity Framework. This approach encompasses five key areas: Identify, Protect, Detect, Respond, and Recover.
Identify Your Risks
The Hartford offers several services to help policyholders identify potential cybersecurity risks:
- BitSight Security Ratings: A complimentary service that measures an organization’s cybersecurity performance using objective, verifiable information.
- Consultation with Data Privacy and Cybersecurity Attorney: A free service to help review and prioritize privacy and cybersecurity strategies.
- Third-Party Vendor Contract Review: A service provided by privacy and cybersecurity legal experts to review potential exposures from third-party vendors, with the first review offered free of charge.
Protect Your Organization
To help policyholders protect their organizations, The Hartford provides:
- KnowBe4 Security Awareness Training: Discounted employee training and phishing tests.
- The Hartford Cyber Center: A free digital portal offering sample policies, research tools, and cyber intelligence.
- Cyber Advisories and Exclusive Webinars: Available to policyholders who register for The Hartford Cyber Center.
Detect Threats
The Hartford offers a 24/7 fully managed threat detection service called Arete and SentinelOne Managed Detection and Response. This service uses AI-driven technology to reduce attack surfaces, identify vulnerabilities, and improve overall enterprise security.
Respond
In the event of a cyber incident, The Hartford provides:
- 24/7 Cyber Claims Hotline: Guides policyholders through initial steps after a breach and helps navigate incident response and recovery processes.
- CyberChoice First Responders: A panel of professionals with expertise in cyber and breach response to assist with the entire incident response process.
Recover from Cybersecurity Incidents
To help businesses recover after a cyber incident, The Hartford offers access to Cyber Extortion and Data Recovery Experts third-party specialists to assist in returning businesses to normal operations.
The Hartford
FailSafe Coverage
The Hartford
FailSafe Coverage Analysis
The Hartford an overview of its FailSafe® policy, a comprehensive insurance solution designed for technology businesses to address professional, media, and cyber risks. This policy offers stronger protection and more choices than competing policies in the market.
Coverage Areas:
- Professional Liability for errors and omissions
- First-Party Coverage including:
- Breach Expenses (crisis management, cyber investigation, notification)
- Liability (data privacy regulatory expenses, PCI expenses)
- Extortion (cyber extortion expenses)
- Business Interruption and Data Loss
- Cyber Crime (social engineering, invoice manipulation, cryptojacking)
Additional Benefits:
Access to The Hartford Cyber Center, providing preventive and responsive services
24/7 claims hotline staffed by experienced technology and cyber claims team
The Hartford Cyber Center
The Cyber Services Portfolio helps organizations:
- Identify risks
- Protect the organization
- Detect threats
- Respond correctly
- Recover from cybersecurity incidents
Comparison with Other Carriers
The Hartford includes a checklist for comparing FailSafe with other carriers’ programs, covering various aspects of wrongful acts and first-party coverage. This allows potential clients to evaluate FailSafe’s comprehensiveness against competitors.
About The Hartford
- Over 200 years of experience helping businesses
- Claims service rated 4.7 out of 5 stars
- Named among the World’s Most Ethical Companies® 13 times by the Ethisphere Institute
Product Details
- Various property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. may underwrite coverage.
- Availability may vary by state and business type
- The document provides information as of December 2022
The Hartford’s FailSafe policy offers a comprehensive solution for technology businesses, addressing a wide range of professional, media, and cyber risks with flexible coverage options and additional services to support risk management and incident response.
The Hartford
Ransomware
The Hartford
Ransomware Vulnerability
The Hartford’s Ransomware Mitigation Suite, is a comprehensive program designed to help select commercial policyholders assess and mitigate ransomware risks. This suite is particularly relevant as ransomware remains one of the most significant cybersecurity threats to businesses, with common system vulnerabilities being the root cause of over 90% of attacks.
Key Components of the Ransomware Mitigation Suite
1. Breach Coach Consultation
- A complimentary 1-hour ransomware consultation with a data privacy/cybersecurity expert
- Covers the latest ransomware types, common attack vectors, and prevention recommendations
- Provides a point of contact for future cybersecurity incidents
2. Cyber Vulnerability Assessment
- Complimentary BitSight Security Ratings Report and platform access
- Helps identify potential security vulnerabilities
- Includes consultation with a BitSight Customer Success Manager
3. Vulnerability Remediation Consultation
- Optional 1-hour consultation with a third-party IT security expert
- Focuses on understanding and remediating vulnerabilities identified in the BitSight report
- Offers assistance with prioritization and explains available discounted IT security services
4. Security Awareness Training
- Optional access to KnowBe4’s Security Awareness Training
- Includes employee training on cybersecurity risks and prevention
- Offers phishing tests and other resources at discounted rates
Process Overview
The suite follows a step-by-step approach:
1. Policyholders request access to the Ransomware Mitigation Suite
2. They receive a breach coach consultation
3. A BitSight Security Ratings Report is provided to identify vulnerabilities
4. An optional remediation consultation is offered
5. Access to security awareness training is made available
The Hartford emphasizes that while they provide access to these third-party services, they are not affiliates of The Hartford, and policyholders are not required to use them. The company also notes that using these services does not guarantee lower cyber losses.
This comprehensive approach aims to help businesses proactively identify and address potential ransomware vulnerabilities before malicious actors can exploit them.
Cyber Protection Tailored to Your Needs
Learn More about The Hartford Coverage & Pricing
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The Hartford | Cyber Insurance
The Hartford offers comprehensive cyber risk insurance designed to protect businesses and provide essential cyber services to maintain operations during incidents. Their coverage includes standalone cyber insurance, options blended with Tech Errors & Omissions or Miscellaneous Professional Liability, and excess capacity. The Hartford’s cyber team is dedicated to helping clients stay prepared against evolving cyber risks, offering the latest insights, education, and resources to understand and mitigate potential threats.
In addition to insurance coverage, The Hartford provides valuable cyber risk mitigation services to its clients. These include a network vulnerability scan and access to The Hartford Cyber Center at no additional cost. The company also offers a library of marketing materials, thought leadership articles, and webinars to help businesses learn how to minimize cyber risks and build effective defense strategies. With experienced cyber underwriters and in-house claims handlers, The Hartford prides itself on its specialized knowledge and ability to handle a range of risks with quick turnarounds.
What is Cyber Insurance
Cyber insurance is a specialized insurance product designed to protect businesses against the financial losses and disruptions that can arise from cyber-related incidents, such as data breaches, ransomware attacks, and other cyber threats. This type of insurance typically covers costs related to data recovery, legal fees, notification of affected parties, regulatory fines, and business interruption losses. Businesses need cyber insurance to mitigate the financial impact of cyber-attacks, ensuring they can quickly recover and continue operations while minimizing the potential damage to their reputation and customer trust.
What does cyber insurance cover?
Cyber insurance typically covers costs related to data breaches, including data recovery, legal fees, notification of affected parties, and regulatory fines. It may also cover business interruption losses and expenses related to restoring business operations.
Why is cyber insurance important for SMBs?
Small businesses, often with potentially weaker security measures, are prime targets for cyber attacks. Cyber insurance is a crucial tool in managing the financial burden of such attacks, ensuring they can recover quickly and sustain minimal operational disruption.
How is the cost of cyber insurance determined?
Factors such as the size of the business, the industry, the amount and type of data handled, and the company’s existing cybersecurity measures influence the cost of cyber insurance. Higher-risk businesses or those with poor security practices may face higher premiums.
What are the exclusions in a cyber insurance policy?
Standard exclusions in cyber insurance policies include claims related to pre-existing breaches, acts of war or terrorism, and the failure to maintain minimum security standards. It’s essential for businesses to review policy details to understand specific exclusions and limitations.