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Cyber privacy and security

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Your Hanover agent can help you tailor the right cyber privacy and security coverage for your business.

What is cyber privacy and security coverage?

Cyber privacy and security insurance protects companies and organizations from liability and other expenses related to the loss of confidential personal information.

Why does your business need protection for cyber risks?

Advancements in technology have drastically changed the way businesses are run. Files with personally identifiable information once stored in locked file cabinets are now stored on laptops and in the cloud. Payments once made by check are now made via computer-based systems. In turn, businesses now face a variety of cyber risks, including lost and stolen laptops, phishing scams, hacks and more. The statistics on cyber risk are shocking:

  • 86 percent of businesses store personally identifiable or personal health information electronically
  • 53 percent of U.S. businesses experienced a cyber attack in the past year
  • $225 is the estimated average cost per record in the event of a data breach

And, as technology continues to advance and becomes increasingly complex, the cyber risks businesses face will become increasingly complex as well. It's important to understand the cyber risk your business faces and ensure you have adequate cyber insurance in place that can evolve with your business.

The Hanover's management liability cyber privacy and security advantage solution

The Hanover's management liability cyber privacy and security advantage coverage (ML Cyber Advantage) is designed for businesses that face more significant cyber risk. Available as either a stand-alone policy or as part of a modular private company or nonprofit policy, ML Cyber Advantage provides broad coverage that can be tailored to meet your business' unique needs. ML Cyber Advantage's multiple insuring agreements include:

  • Privacy and security liability – liability arising from a privacy breach (failure to protect personally identifiable information) or a security breach (failure to protect systems)
  • Cyber media liability – liability for infringements related to electronic media
  • Breach event expenses – expenses for notification costs, forensic investigation, credit monitoring, call center and PR firms
  • Breach reward expenses – expenses to pay informants who provide information leading to the capture and conviction of a "hacker"
  • Breach restoration expenses – expenses to rebuild data/media
  • Cyber investigations – defense costs for regulatory investigations
  • Cyber business interruption and extra expense – coverage for loss of net income/continuing expenses arising out of a security breach
  • Cyber extortion expenses – coverage for loss of funds surrendered for threats to release confidential records
  • Cyber theft – coverage for loss of funds or property due to fraudulent transfer via entry into a computer system through the internet

Other product features include:

  • Shared aggregate – ML Cyber Advantage can sit on top of BOP or CPP coverage
  • Criminal proceedings – ability to include criminal proceedings on the liability side
  • Discovery requirements – given the larger type of claim that may occur, ML Cyber Advantage provides more time to report a loss with a longer discovery period, with 90 days to report a loss and six months to report proof of loss
  • Broad definition of confidential records – includes non-public, financial, credit card, employment and healthcare related information
  • Coverage for confidential data in electronic and physical form

Additional optional coverage endorsements include:

  • Payment card fines and penalties
  • Consumer redress funds
  • Amended reporting

And, in addition to our broad coverage, ML Cyber Advantage includes expert risk management and cyber claims services before, during and after a breach occurs:

  • Pre-breach – access to the eRisk Hub® portal, powered by NetDiligence®, which provides tools and resources to help you understand exposures, establish a response plan and minimize the effects of a breach. The portal also includes a directory of external resources with expertise in pre- and post-breach disciplines.
  • During a breach – While some policies require use of preferred provider for data breach response, with ML Cyber Advantage, you have the ability to use any provider you want. 
  • Post-breach – access to a sophisticated breach coach attorney from Mullen Coughlin LLC, a law firm dedicated exclusively to representing organizations facing data privacy events, information security incidents, and the need to address these risks before a crisis hits.

Sources Half of U.S. businesses have been hacked, Zogby Analytics and sponsored by Hartford Steam Boiler, 2017
Cost of Data Breach Study: United States, Ponemon Institute, 2017