HSB Engineering Insurance has launched a new cyber insurance product aimed directly at small to medium-sized businesses in the U.K.
In response to the growing demand for insurance solutions to cover cyber risks, HSB’s Cyber Insurance product provides computer, data and cyber risks cover in one policy, HSB said in a statement.
The new product will be sold through brokers and although principally aimed at businesses with a turnover of up to £10 million ($15.2 million), the cover is also applicable for medium-sized firms with turnover up to £50 million ($76 million), the company said.
While financial and data losses for small businesses may not make the headlines, the cost and reputational impact of an incident can be crippling, said HSB.
“Firms such as accountants and lawyers might be perceived to hold more sensitive data, but all businesses could be at risk from a cyber attack or data breach, by hackers, viruses or errant employees,” the company added.
With hardware (including portables) and data corruption cover included, HSB’s Cyber Insurance includes cover in the following areas:
- Data breach expense
- Cyber crime
- Cyber liability
- Cyber event – loss of business income
“Many cyber policies can appear complicated, expensive and targeted at large businesses. Currently it is easier to buy £20 million [$30.4 million] of cyber cover in the London market than £100k,” said Stephen Morris, chief underwriting officer, at HSB.
“With 74 percent of small businesses having experienced a security breach in the last 12 months, we recognized that there was a gap in the market for comprehensive cover aimed specifically at the small to medium-sized business,” added Morris.
He noted that hackers often target smaller companies because they believe “they are less likely to have robust cyber defenses in place.”
If businesses experience a cyber event or data breach, they want the reassurance that they have “the professional support they need to reduce any potential financial and reputational impact,” he said. “At HSB we believe that cyber insurance cover should become standard for all businesses.”
HSB Cyber Insurance policy is available through local HSB offices. Additional information on Hartford Steam Boiler’s cyber cover is available on Munich Re’s website.
* HSB Engineering Insurance is the U.K.-based arm of Hartford Steam Boiler, which was acquired by Munich Re in April 2009.
Source: HSB Engineering Insurance
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