The Hartford Steam Boiler Inspection and Insurance Company ("HSB"), part of Munich Re, has introduced what it characterized in a statement as "a comprehensive cyber insurance coverage designed for small to mid-sized businesses and other organizations."
HSB said that its new product "combines a range of cyber insurance coverages and services for data breach, identity theft and cyber attacks, including malware, viruses, ransomware, cyber extortion and social engineering schemes."
"Hackers and other cyber criminals can attack a business in many ways that make small to mid-sized companies vulnerable," said Timothy Zeilman, HSB vice president. "Cyber risk is like a 'hydra,' the mythical multi-headed snake: cut off one head and you're confronted with new ones."
Half of U.S. businesses (53 percent) experienced a cyber attack in the past year, according to a study conducted by Zogby Analytics for HSB. Of those companies, 72 percent spent $5,000 or more to respond and 38 percent spent over $50,000.
The HSB survey also found that 86 percent of businesses store personally identifying or personal health information electronically, making them targets for cyber criminals and exposing the businesses to data loss from stolen or lost laptops, USB drives, or other devices.
HSB's new cyber product provides insurance and hands-on case management for small to mid-sized enterprises, which may lack the resources or experience to prevent and manage a cyber incident, according to HSB.
In addition to insurance defense and services to respond to cyber attacks, the new HSB product covers costs and payments resulting from lawsuits over compromised data, network security, and electronic media liability, such as copyright infringement, defamation, or privacy claims, HSB added.
HSB said the new product is available as a turnkey reinsurance program through HSB insurance partner insurers.
Learn more: www.hsb.com.