Hiscox Adds Cyber Crime Protection for Small, Medium-Sized Businesses

September 11, 2013

Hiscox, the international specialist insurer, has added a new cyber crime protection endorsement to its technology privacy cyber portfolio. The cyber crime coverage option provides additional protection against growing exposures related to cyber crime connected to business bank accounts.

“Technology is increasingly being used to attack or threaten businesses, but many companies are unaware of the new and growing exposures related to cyber crime that they may face,” said Jim Whetstone, Professions Practice Leader, Hiscox USA.

Small and medium-sized businesses are becoming more vulnerable to cyber crime as their online financial transaction rates increase. Fifty-one percent of small and medium-sized businesses (SMBs) transferred funds online in 2012, up 6 percent from 2011. However, the majority of SMBs admit that the computer they use is “not safe or they are unsure”, according to the 2012 Business Banking Trust Study.

As much as $1 billion per year is being stolen from SMB bank accounts, but financial institutions are only fully reimbursing those companies about 25 percent of the time, the 2012 Business Banking Trust Study also found.

Business bank accounts have less protection and significantly higher liability for fraud than personal accounts. Often, if the compromise occurs at the business and not at the bank, the bank will not reimburse companies for their losses.

“Most businesses would not be able to withstand an attack that emptied their bank account, but without proper coverage, getting reimbursed is not guaranteed,” said Matt Donovan, Technology Underwriting Leader, Hiscox USA. “Hiscox has added the Cyber Crime protection endorsement to provide these businesses with protection not provided by many banks.”

Hiscox’s Technology Privacy Cyber portfolio provides US-based businesses coverage for cyber crime and data breaches. Hiscox has provided technology- and privacy-related protection for exposures to clients for over 15 years.

In addition to Cyber Crime protection, Hiscox Technology Privacy Cyber portfolio offers protection for:

  • · Technology errors and omissions
  • · Privacy and network security liability
  • · Data breach costs
  • · Cyber business interruption
  • · Cyber extortion
  • · Miscellaneous professional liability
  • · Multimedia liability

Hiscox is a global provider of technology and privacy protection. In the US, Hiscox offers a diverse portfolio of property, professional liability and other commercial insurance products, and has offices in New York; White Plains, N.Y.; Atlanta; Chicago; Los Angeles; and San Francisco.

 

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