By Elise Linscott
For the first time, a Hawaiian insurance carrier will be offering cyber security insurance to local businesses which, the company says, is less expensive than similar offerings from mainland insurance carriers and will have more coverage options for small- to medium-sized businesses.
“Data breaches and hacking have become so increasingly prevalent, especially in Hawaii’s interconnected business community, that a single information leak can lead to a lot of detrimental effects on a company’s bottom line, so we felt the need to protect our customers,” said Danielle Finn, vice president of commercial lines for DTRIC Insurance Co. “DTRIC is a little company, but we pride ourselves on ensuring the safety and well being of our clients. We felt it was a need that was out there and we wanted to be the first insurance carrier (in Hawaii) to offer it.”
Cyber One is a product that includes both data compromise and cyber liability coverage. The product was launched in August, and several policies have already been sold. Finn said the program is off to a good start.
“We really wanted to bring a product to the local Hawaii businesses that would give them a good amount of coverage at an affordable price. It includes coverage for Internet fraud, hacking, identity theft and data breaches.”
There are also additional coverage options, such as public relations services and forensic IT review, to help companies deal with the ramifications and identify the cause of a data breach.
Hacking and data breaches have been on the rise in recent years. From 2013 to 2014, data breaches increased by 27.5% nationwide, and in 2014, Hawaii’s reported cyber crime loss was nearly $2.5 million, according to an informational packet from DTRIC. Common causes for data breaches are employee or contractor mistakes, lost or stolen electronics, and procedural errors, among others.
Cyber One, like all of DTRIC’s commercial products, will be sold exclusively through independent agency partners, Finn said.
