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 of more than 760 data breaches analyzed in 2010, nearly two-thirds involved businesses with fewer than 100 employees.
To address this growing issue, 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.
"For smaller businesses in particular, the ability to respond quickly and appropriately to a data breach is critical to restoring customer trust," said Raymond Sprague, senior vice president of small commercial insurance at The Hartford. "This coverage is designed to give business owners the peace of mind that they can better protect against, respond to and recover from a breach."
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 leading provider of identity and data risk management and resolution services.
To learn more about The Hartford's data breach coverage for small businesses, visit www.thehartford.com/info/databreach. For information about The Hartford's cyber risk coverage for larger businesses, visit www.hfpinsurance.com/cyberchoice.