Specialty insurer Hiscox says it will add a new Cyber Crime protection endorsement to its Technology Privacy Cyber portfolio, providing protection against exposures related to cyber-crime connected to business bank accounts.
Hiscox's Technology Privacy Cyber portfolio provides US-based businesses specialized protection for cyber crime and data breaches, says Hiscox.
In addition to Cyber Crime protection, the portfolio offers coverage for:
- Technology Errors and Omissions.
- Privacy and Network Security Liability.
- Data Breach Costs.
- Cyber Business Interruption.
- Cyber Extortion.
- Miscellaneous Professional Liability.
- Multimedia Liability.
"Most businesses would not be able to withstand an attack that emptied their bank account, but without proper coverage, getting reimbursed is not guaranteed," says 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, citing Guardian Analytics' 2012 Business Banking Trust Study, notes that as much as $1 billion per year is being stolen from small- and medium-sized businesses' bank accounts, but financial institutions are only fully reimbursing those companies about 25 percent of the time.
"Business bank accounts have less protection and significantly higher liability for fraud than personal accounts," says Hiscox. "Often, if the compromise occurs at the business and not at the bank, the bank will not reimburse companies for their losses."
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