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What is Hiscox Cyber Security Insurance?
Cyber Security Insurance protects against computer-related losses. These can include phishing or ransomware attacks, or because a laptop or other device containing sensitive information was lost or stolen.
If a business maintains a website, uses email, accepts credit card payments, or collects or stores customer data it is vulnerable to a cyber incident.
What does Hiscox Cyber Security Insurance cover?
Money lost due to fraudulent instruction or social engineering (like a phishing attack)
Data recovery and business interruption costs due to a ransomware attack, data breach, or security failure
The cost to comply with regulatory requirements
The cost to replace, restore, or repair damaged or destroyed data
The cost to defend claims regarding the handling of confidential information
Income loss sustained due to reputational harm suffered after a covered cyber event
Enhanced privacy regulation coverage for regulatory proceedings involving consumer privacy violations
Also includes:
- Tools to help businesses prevent a cyber incident
- Hiscox eRisk Hub® to help identify exposures, establish a response plan and minimize effects of a breach
- 1 hour of risk management and loss prevention services with a nationally recognized law firm
Who needs Cyber Security Insurance?
Customers and vendors are increasingly requesting that the companies they do business with carry Cyber Security Insurance coverage. Having the right coverage in place can help your client win business and demonstrate that they’re ready to work.
Today’s business technology opens up a world of possibilities but also raises some cyber protection concerns. Threats of data breaches and computer hacks are real for all businesses. A business’s largest asset may be its data, so it’s important to protect it.
Businesses of any size need Cyber Security Insurance if they:
Accept credit cards, or other digital payment types
Collect or store medical or financial data
Store confidential customer information
Use computers and mobile devices like tablets or smartphones
Takeaways from the 2023 Hiscox Cyber Readiness Report
Each year, Hiscox reports on the state of cyber readiness of businesses worldwide to determine how prepared businesses are to withstand a cyber attack.
For US small businesses (with 250 or fewer employees) the 2023 Hiscox Cyber Readiness Report found:
The average business had 4 cyber attacks in the previous 12 months
Cyber attacks cost these businesses an average of $8,000 over that time
Ransomware was the most common type of attack, and the average ransom paid was $16,000. Only half of the businesses that paid a ransom demand actually got their data back.
Fast facts about Hiscox Cyber Security Insurance
Admitted
$5m revenue limit
Start-up friendly
$270 minimum annual premium
Policy documents will be sent to both you and your client
Automatic renewals after 12 months
What is the Hiscox appetite for Cyber Security Insurance?
We offer Cyber Security Insurance for hundreds of professions. Some of the most popular include:
Allied health professions
- Social workers
Consultants
- Business consultants
- Management consultants
- Marketing consultants
- Media consultants
Financial services
- Accountants
- Bookkeepers
- Tax preparers
Technology
- IT consultants
Your client could be covered in situations like these
Phishing email leads to ransomware
An employee at a retail store’s headquarters clicks on a link in a phishing email from a vendor partner. A cyber criminal gains access to the retailer’s entire server, impacting its point-of-sale registers. The ransomware attack holds the systems hostage, effectively stopping sales from being transacted.
Negligence by media firm leads to breach
The computer system of a media firm contains large amounts of data on its clients' analytics, including search engine optimization keywords and pay-per-click campaigns. The system's security services upgrade lapsed, leaving it more vulnerable to a breach. The system is hacked and several clients file lawsuits alleging negligence.
Optional coverage upgrades
Media Liability
Covers costs to defend and resolve claims related to online content such as copyright and trademark infringement, invasion of privacy, defamation, unintentional infliction of emotional distress, unfair practices, and negligence in connection with your media activities or your client’s advertising of their professional services.
Terrorism Coverage
Covers losses arising out of certified acts of terrorism, as defined by the Terrorism Risk Insurance Act.
What does Cyber Security Insurance not cover?
Criminal proceedings
We won’t cover claims brought in the form of a criminal proceeding, such as a criminal investigation, grand jury proceeding, or criminal action.
Infrastructure interruption
We won’t cover claims from failure or interruption of water, gas, or electric utility providers.
Subsidiary outside control of named insured
We won’t cover any incident experienced by a subsidiary you do not have majority ownership or management control of.
Business interruption from systems under the control of third parties
We won’t cover business interruption costs from a system failure of a computer system owned by any person or entity that is not an insured (except for those interruptions covered by the dependent system failure coverage enhancement).
Funds transfer
Other than transfers associated with cyber crime coverage, we won’t cover claims for loss, theft, or transfer of funds, monies, or securities.
Intentional acts
We won’t cover any fraud, dishonesty, criminal conduct, or knowingly wrongful act of the business or its employees.
Prior acts or knowledge
We won’t cover any claims you had knowledge of prior to the policy period.
The cost of Cyber Security Insurance
The cost of Cyber Security Insurance is determined by several factors, including:
Industry
Businesses operating in industries with a higher risk of cyber threats may require more comprehensive coverage which can impact the cost of the Cyber Security Insurance policy.
Business size
Larger companies with more employees and technological assets to protect may need increased coverage limits.
Coverage limits and deductibles
Customizing your client’s coverage based on their business’s specific needs can affect the cost of their Cyber Security Insurance policy. Higher limits will generally result in higher premiums, but they also provide increased protection against costly cyber incidents. Also, by choosing a higher deductible, you can lower your client’s premium. It’s only fair, as they’re taking on more of the risk.
Bundle and save
We offer customers up to a 5% discount if they buy two or more Hiscox products.
Related products
Cyber Security Insurance can be packaged with:
Why Hiscox?
You have choices when it comes to quoting Cyber Security Insurance for your clients. Here’s why you should choose Hiscox.
Business insurance experts
We only sell business insurance and we customize coverage for the risks your clients face.
Write more business, faster
With Hiscox NOW, quote and bind online in minutes, for same-day coverage. We handle all the servicing and billing, and policies auto-renew, so you collect the commission for the life of the policy.
Award-winning claims team
Our award-winning in-house claims team will walk your client through the claims process, and our A (Excellent) rating from A.M. Best shows we stand behind our policies.
Ready to write Cyber Security Insurance?
Find your wholesaler to quote and bind a policy for your client today.
Cyber Security Insurance FAQs
The use of this portal to obtain a premium operation does not alter or change your relationship with Hiscox or your customer. At all times you remain broker for the applicant and not an agent of Hiscox.
Our companies in the US include Hiscox Insurance Company Inc. (NAIC# 10200), and its general agent, Hiscox Inc. Hiscox Insurance Company Inc. is a Chicago, IL domiciled insurer admitted or licensed to do business in all 50 states and the District of Columbia. Hiscox Insurance Company Inc. is rated A (Excellent) by A.M. Best with a group financial size category (FSC) of XV ($2 Billion or greater), proving we have strong capital reserves.
Hiscox Inc., a DE corporation that does business in California as Hiscox Insurance Agency, is an approved Lloyd’s cover holder and underwrites surplus lines business on behalf of Lloyd’s Syndicates 33 and 3624. Syndicate 33 is rated A (Excellent) by A.M. Best. Lloyd's syndicates are restricted in doing business in the USA and its territories as they are not US-based insurers. The business we write on behalf of Lloyd's Syndicates 33 and 3624 in the US is placed by licensed surplus lines insurance brokers.