Specialized cyber insurance solutions
Cyber risk management resources
The Hanover offers a variety of tools and resources, as well as the services of a network of preferred cyber service providers, to help you mitigate your cyber risk. Access now.
In today's digital world, businesses depend on computers and technology to build, grow and run their operations. As technology continues to evolve, so do the threats created by this dependency.
It's not just large companies that are at risk. The reality is, small and midsize businesses are just as likely as larger corporations to experience a cyberattack or breach that damages systems, puts customers or employees at risk and threatens to destroy your bottom-line and reputation. Is your business prepared to operationally and financially respond to an incident?
What is cyber insurance?
Cyber insurance helps protect businesses from losses to a company's finances, reputation and operational capabilities related to a data breach or cyberattack. It provides protection for both the direct costs businesses may face and lawsuits that are brought against your company by a third party when a data breach occurs.
Why do businesses need cyber insurance?
Breaches of personally identifying or protected health information continue to plague business. The resulting expenses can include costs for a forensic IT review, notification and identity monitoring service costs, legal expenses, and regulatory fines and penalties.
These costs can quickly add up for a small or mid-sized business and erode the businesses' bottom line. In fact, a 2017 Better Business Bureau survey found that 53% of businesses would be unprofitable in approximately one month if they permanently lost access to essential data.
But, the risk to your business goes well beyond headline-grabbing personal data breaches. There are several additional ways in which your business could suffer a technology related financial hardship, including:
- Ransomware - While attackers can target specific entities with ransomware, it's generally a widespread indiscriminate attack that infects a businesses' computers and can encrypt its essential data, rendering it useless. Last year, the average adjusted cost per attack was almost $1,300.
- Operational technology – Attacks can go beyond IT systems to target hardware and software that controls physical devices or processes in settings like offices, buildings, factories and utilities. Operational technology (OT) attacks can have more severe consequences than IT attacks. In fact, the average annual financial impact of OT attacks is $347,000.
- Cyber fraud - Whether through direct unauthorized access to systems or social engineering schemes, attackers target the money in businesses' financial accounts. Over the past five years, the average reported loss of business email compromise attacks alone was approximately $71,500.
The Hanover's cyber insurance solutions
Whether you're a main street business or a technology company with 100 employees, The Hanover has a cyber solution to meet your needs. We offer an all-inclusive cyber solution with limits up to $10 million for small and mid-sized businesses through our financial strength, preferred service provider network and tailored coverage. Specifically, we focus on providing solutions for businesses in the following industries:
- Professional services
Key coverages include:
- Privacy and security liability
- Breach event expense
- Breach reward expense
- Cyber business interruption and extra expense
- Cyber extortion
- Cyber theft
- Breach at a third-party
- Cyber media liability
- Fines and penalties
Our suite of cyber coverage includes:
- Data breach and cyber liability – coverage is offered as an add-on to a business owner's policy or commercial package policy as part of a total account insurance solution
- Cyber privacy and security – coverage is offered as a stand-alone coverage part or as part of a convenient suite of management liability coverages
- Cyber for technology companies – because tech companies face increasingly complex cyber risk, including errors and omissions, coverage is included as part of our Hanover Technology Advantage
2018 Cost of a Data Breach Study: Global Overview, Conducted by Ponemon Institute
BBB.Org, 2017 State of cybersecurity among small businesses in North America