Optional Data Breach Coverage & ServicesMarket Opportunity The national Data Breach market for small businesses is estimatedat $1.5B.*Data Breach Defined Loss, theft, accidental release or accidental publication of PersonallyIdentifiable Information (PII) including:• Social security number;• Bank account number(s);• Driver’s license number;• Patient history and medicationsHow a Breach Can Occur • Unauthorized access (such as by former employees or vendors);• Stolen or lost paper files;• Stolen or lost laptop or computer disks;• Stolen credit card information;• Employee error or oversightWho Needs Data Breach Coverage Any business that handles or stores any private business, customer and patientor employee data is at risk. Key industries include:• Professional Services (eg: lawyers or accountants) and Outpatient Healthcarepractices based on the importance of their relationships with clients andpatients and the information they store.• Retailers & Restaurants based on the significant number of debit and creditcard transactions.• Financial Services and Insurance Agencies based on the type of sensitivecustomer information stored.1st Party Response Expenses Coverage includes …• Legal & Forensic Services ($5,000 sub-limit)• Crisis Management/Public Relations• Notification Expenses• Good Faith Advertising Expenses ($5,000 sub-limit)• Services for impacted individuals (eg: credit monitoring, help line, if warranted)Available Limits: $10,000; $25,000; $50,000; $100,000Per Claim Deductible: $1,000 for $10,000 and $25,000 limits$2,500 for $50,000 and $100,000 limits3rd Party Defense & Liability Expenses Available Limits: $50,000; $100,000; $250,000; $500,000(including defense costs) No deductible appliesClaims made basisAccess to a proprietary data breach • Tips and resources to help businesses minimize the chance for a breachweb site providing and how to safeguard PII• Legal requirements by state• Information on how to create a data breach incident response plan• Guidance on what needs to be done if a breach occursTeam of breach experts who will • Assist if your customer believes a breach has occurred and determine thepotential severity of the breach; and• Consult on “next steps” to address a breach situationDATA BREACH: JUST THE FACTSSmall CommercialSpectrum® Business Owner's Policy –Optional Data Breach Coverage & Services*Identity Theft 911 based on 30% penetration of businesses with fewer than 21 employees continuedThis document outlines in general terms the coverages that may be afforded under a Hartford policy. All policies must be examined carefullyto determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specificallyaffect coverage. In the event of a conflict, the terms and conditions of the policy prevail. All Hartford coverages described in this documentmay be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc.107858 © May 2011 The Hartford Financial Services Group, Inc., Hartford, CT 06155 All Rights Reserved• The number of data breach incidents is on the rise,and the regulatory requirements that need to besatisfied when a breach occurs can be significant.• Small business owners have a deep sense ofresponsibility to their employees, patients andcustomers. When a breach occurs, trust is violated,putting these important relationships in jeopardy.Small business owners want to quickly restoretheir customers’ trust and business’ reputation.With our Data Breach Offering, if a breach occurs,your customers will have …• The peace of mind of knowing they have theinsurance coverage needed to pay for certainresponse expenses necessary to comply withnotification regulations and to help cover lawsuitsthat may be brought against them as the resultof a breach; and• The confidence that services are available to helpmitigate any damage to their business’ reputationand to help restore loss of customer, patient oremployee trust.Unlike some carriers that offer Data Breach coverage …• We make this coverage available as an endorsementto our Spectrum Business Owner’s policy vsa standalone policy. This saves you processing timeand gives your customers the convenience of onepolicy and bill.• Customers have the flexibility to purchase 1st PartyResponse Expense and 3rd Party Defense &Liability Expense coverage, or only 1st PartyResponse Expense coverage.• Our offering includes pre and post-breach servicesto help minimize the occurrence of a data breachand expert assistance if one occurs.• We offer this coverage to most industries includingFinancial Services and Outpatient Healthcare.Keep in mind that The Hartford offers a portfolio ofData Breach products. Customers needing increasedcoverage and/or higher limits can consider ourCyberChoice products available through HartfordFinancial Products.• Visit iMarket. Follow Small Commercial>Learn MoreAbout The Hartford>o Lines of Business>Spectrum ORo Our Industries>Outpatient Healthcare• Visit the Products & Services tab on the eBusinessCenter (EBC)• Contact your Hartford representative