While data breaches at large companies continue to dominate the headlines, breaches involving smaller businesses are also on the rise. According to a 2011 report from Verizon Business of more than 760 data breaches analyzed in 2010, nearly two-thirds involved businesses with fewer than 100 employees.
The Hartford has expanded its portfolio of cyber risk coverage with data breach protection designed specifically for smaller businesses.
The Hartford’s data breach offering is available as an endorsement to the company’s Spectrum business owner’s policy. It provides coverage for expenses and legal liability resulting from a data breach. It also provides access to services to help business owners comply with regulatory requirements and address customer concerns.
While virtually any business is at risk of a data breach regardless of industry, businesses that store sensitive client or patient data, such as those in healthcare, financial or professional services are particularly vulnerable. Restaurants and retailers also face increased risk, given the volume of credit card information they process.
The Hartford’s data breach coverage includes:
- First party coverage for response expenses, including legal and forensic services, notification expenses, crisis management and good faith advertising expenses;
- Third party coverage for defense and liability, including defense costs, civil awards, settlements or judgments that an insured is legally obligated to pay;
- Access to a secure breach preparedness website that offers tips and guidelines for safeguarding customer, patient and employee information; preparing a data breach incident response plan; and regulatory requirements by state;
- Consultative services, including help with breach notifications and credit monitoring for victims of identity theft or fraud, if warranted.
The Hartford provides the breach preparedness resources and consultative services through an alliance with Identity Theft 911, which is a provider of identity and data risk management and resolution services.