Hartford Financial Products

The Hartford Introduces New Cyber Liability Insurance to Protect Against Cyber Risk-An Unseen Network Liability

Insurer unveils The Hartford CyberChoice 2.0sm to address growing liability risk of storing electronic data via web-based communities
Information sharing among Internet users via web-based communities such as social-networking sites has today become a real liability threat for many organizations, businesses and universities around the country. In fact, according to Trend Micro, an Internet content security firm, there has been a dramatic increase in web threat activity during the first half of 2008, with web threats peaking in March at 50 million, from approximately 15 million in December 2007.

To address the growing concern around threats now associated with the functionalities of Web 2.0, Hartford Financial Products, an underwriting unit of The Hartford Financial Services Group, Inc. (NYSE: HIG) has developed a new liability product, CyberChoice 2.0 that provides businesses with a robust, technology-related insurance policy that goes beyond traditional business insurance.

CyberChoice 2.0 includes both errors and omissions and first-party coverage designed to help meet the needs of today's traditional companies that recognize their technology exposure and information risks. Companies and/or organizations with personally identifiable information (PII) include:
  • Healthcare
  • Financial Services
  • Retail
  • Manufacturing
  • Education
  • Legal
  • Media
  • Miscellaneous companies such as data processors, application service providers and e-commerce companies that have an increased Cyber exposure.

"Cyber risk is an unavoidable, but very real, part of the internet economy that has created new liabilities and business exposures," says Drew Bartkiewicz, vice president of Cyber and New Media Risk at The Hartford. "As Web 2.0 is becoming more mainstream, so are the business risks of privacy, media, and online advertising. This is especially an issue as companies experiment with initiatives where the users create the potential new media liabilities associated with websites, including social networking sites. This is the most dynamic area of the economy, and the most legally uncertain in terms of doing business."

Key features of The Hartford's new CyberChoice 2.0 product include:

  • Third-party coverage for data privacy and network security liability; Internet and electronic media liability; and professional services liability.
  • First-party business interruption coverage in the event of a network security breach.
  • First-party cyber extortion coverage for threats against data and identity theft.
  • Intellectual property coverage for advertising and technology products.
  • Reimbursement for expenses related to responding to a major privacy event. Some examples include notification of affected parties, costs for managing the crisis, data privacy regulatory fines, cost associated with credit monitoring, and investigation of the event by outside experts.
  • Up to $10 million in coverage limits are available.

"In the last decade alone, personal data has become a valued company asset for businesses in the U.S. and abroad," says Bartkiewicz. "With companies doubling their data volume every year and new regulations on the horizon, experts predict that the problem of data risk will continue to threaten businesses - and that the likelihood that a company and/or organization will experience a data breach will increase exponentially. We hope that the release of The Hartford's new CyberChoice 2.0 product will help better protect companies against the many threats now part of our online world today."

CyberChoice 2.0 is available via The Hartford Financial Products unit. To learn more about CyberChoice 2.0 visit www.hfpinsurance.com or contact Patricia Fitzgerald at (212) 277-0457.
Coverage is underwritten through the property and casualty insurance companies of The Hartford Financial Services Group, Inc. Please refer to the policy to determine all terms, conditions, exclusions, and limitations of coverage. Coverage may not be available in all states.

About The Hartford
The Hartford, a Fortune 100 company, is one of the nation's largest diversified financial services companies, with 2007 revenues of $25.9 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, the United Kingdom, Canada, Brazil and Ireland. The Hartford's Internet address is www.thehartford.com.

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2007 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.


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