The Hartford Introduces New Professional Liability Insurance for the Business Services Industry

Insurer finds nearly half of all business services firms go without protection; new product fills need for affordable, state-approved coverage

HARTFORD, Conn., October 9, 2006 - For companies that provide business services to clients, there's always the risk that something can go wrong. Yet, according to The Hartford Financial Services Group, Inc. (NYSE: HIG), only half of small to mid-sized companies in the growing business services industry have insurance to protect them against lawsuits arising from their work. With defense and settlement costs sometimes reaching into the millions, professional liability coverage should be part of a responsible risk management program for every service company.

To meet the needs of this market, Hartford Financial Products (HFP), a unit of The Hartford, has just introduced The Hartford Professional Choice Liability Policy^SM, a new miscellaneous professional liability policy for firms and their employees involved in the business services industry. This includes market researchers, loss control specialists, franchisors, contest managers, advertising and public relations firms, third party administrators, temporary staffing firms, trustees and a host of other service businesses.

Professional liability insurance, also known as errors and omissions (E&O) coverage, is similar to malpractice insurance and protects professionals from liability when an action - or failure to take action - results in financial damage to a client. This type of coverage is important in today's ever-changing business and legal environment, where a simple error by a service firm can lead to significant financial losses that are excluded from coverage under most general liability insurance policies.

"No longer is professional liability litigation limited to large companies. A growing number of mid-size and smaller business services firms are on the receiving end of lawsuits related to the work they do," said Steve Prymas, an assistant vice president of Hartford Financial Products. "Our research shows that 48 percent of these firms have no professional liability coverage, often believing they are too small to need it or that they can't afford it. Others mistakenly think professional liability is covered somewhere in their regular business policy."

The Hartford has addressed the issue of cost and made it easier to purchase professional liability coverage by offering it as a standard insurance product. Unlike most other carriers, The Hartford Professional Choice Liability Policy is written by an "admitted" insurance company, meaning one that is licensed and regulated by the various states in which it does business. This saves customers the expense of paying a state-imposed surplus lines tax required when a company is "non-admitted," and provides them with the extra security of state regulation. It also streamlines the process by which agents and brokers can place business.

Key policy features which help protect a company and its employees from the financial consequences of professional errors include the following:

Coverage for personal injury, such as libel and slander, arising from the professional services.
Coverage for punitive damages, where allowed by law.
Worldwide coverage.
Coverage that automatically extends to entities/companies acquired by the insured (subject to certain conditions).
Coverage extension for expenses for disciplinary proceedings in which a professional is brought before a regulatory body or association.
Coverage that cannot be cancelled by the insurer, except for non-payment of premium.
Affordable minimum premiums and minimum self-insured retentions. (Retention refers to the amount of money a policyholder must pay for covered damages and/or claim expenses in connection with each covered event before the insurance begins to pay).

Sophisticated clients often require the service firms they work with to obtain professional liability coverage from a highly-rated insurance carrier," noted Prymas. "The Hartford's A+ rating and state-of-the-art coverage satisfy these demands." For more information about The Hartford Professional Choice Liability Policy or The Hartford's other financial products, brokers or agents can visit www.hfpinsurance.com or call Patricia Fitzgerald at 1-212-277-0457.

In addition, a complete listing of professional services covered by the policy is available on the Hartford Financial Products website. Coverage is provided by the member companies of The Hartford and may not be available in all states. Please see policy for actual coverage wording.

The Hartford, a Fortune 100 company, is one of the nation's largest financial services and insurance companies, with 2005 revenues of $27.1 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, Brazil and the United Kingdom. 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, without limitation, those discussed in our Quarterly Reports on Form 10-Q, our 2005 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.