The Hartford Financial Services Group now offers enhanced commercial coverage to accommodate an e-economy. Since many small and mid-sized companies are expanding their use of the Internet to incorporate it as a business tool, they are now vulnerable to new risks, such as e-mail viruses, web site business interruptions and online copyright infringement. Companies may not be covered for such risks by their standard business insurance policies.
The Hartford Financial Services Group has enhanced its commercial coverages to address many Internet-related exposures. The Hartford recently surveyed small and mid-sized business owners and found 80 percent did not know if their policies covered these types of risks.
The Hartford’s enhancements are tailored to the needs of small and mid-sized ‘bricks and clicks’ – those businesses that use the Internet but still generate the majority of their revenues through traditional off-line activities.
The coverage offered, called CyberFlex, is intended to meet the needs of companies that have some Internet exposures, but are not pure dot-com businesses. According to Judy Blades, executive vice president of business insurance at The Hartford, the company hopes to provide clarity and peace of mind for small and mid-sized business customers with respect to coverage for their Internet activities.
CyberFlex enhancements are now being included in policies for most mid- sized companies in more than 30 states, and are expected to be available in most states by September. CyberFlex enhancements for small businesses will be available for purchase starting this summer, with a countrywide rollout scheduled this fall.
The Hartford’s CyberFlex coverage offerings include the following:
–Internet-related Personal and Advertising Injury Coverage protection for several liabilities arising out of content provided on a computer network, including the Internet.
–Worldwide coverage extending to the entire web site and including web site advertising for others via banner ads and links.
–Electronic Vandalism – for mid-sized businesses, this covers data damaged by hackers or viruses.
–Virus Damage and Web Site Vandalism – for small businesses, this covers data and equipment damaged by viruses. Also featured is coverage for business income and extra expense losses due to the willful or malicious alteration of a policyholder’s Web site by another party.
–Web Site, Internet and Communications Services Business Income – covers the loss of income or extra expense incurred as a result of an interruption in Internet service, Web-site hosting service or e-mail access
–Denial of Service Attack – covers loss of income resulting from rogue traffic preventing legitimate customers from accessing a policyholder’s Web site without physical loss or damage to data.
–Good Faith Advertising Expense – covers advertising expenses incurred solely to regain customer faith after a covered loss.
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