Lloyd’s Syndicate Silent Cyber FAQs

Why am I receiving a revised solicitation letter and a cyber notice for my customer’s policy with Hiscox?

You will receive a new version of our renewal solicitation letter for all policies coming up for renewal as of March 1, 2021. It will explain our intent to either cover or exclude cyber incidents under the policy. In light of the continually evolving cyber risk environment, Hiscox is clarifying its coverage for our customers by affirmatively stating whether we are covering or excluding losses caused by cyber events in all of our products. The new solicitation letter and cyber notice will address whether the policy includes a new endorsement or change to the policy wording that either excludes or covers such losses.

Will these changes affect all products written on our admitted (HICI) paper?

• Yes. Hiscox is committed to providing clarity regarding coverage for cyber incidents in all of our policies, including all products written on an admitted basis. We will be introducing new language for our Admitted business starting March 1, 2021.

• Please note that policies renewing on our new Consultants Professional Liability Coverage Part will include these changes starting May 1, 2021. Additionally, Entertainment policies will also include these changes, however, due to filing and system considerations, changes will occur at a later date in 2021. We will provide additional information on the Entertainment timelines in a subsequent communication.

How and when will I find out how my customer will be affected?

• For renewal business, a revised solicitation letter and Conditional Renewal Notice will be sent to the broker and/or insured informing them of the changes to their policy for the upcoming policy period.

• Additionally, the quote and bind letters will be accompanied by a cyber notice, which contains similar information found in the solicitation letter explaining the reason for the change and the overall impact to the client’s coverage under the policy. The applicable endorsement will attach to the quote letter and binder.

• Please note that the dates these changes will take effect may vary depending on whether the policy is on the new Consultants Professional Liability Coverage Part or an Entertainment product.

How will automatic renewals be impacted?

Policyholders eligible for automatic renewal on or after March 1, 2021 will receive a Conditional Renewal Notice, which will inform the insured of the addition of a new endorsement or change to their policy wording. These insureds will also receive a new version of our solicitation letter. When the policy is issued, we will attach a cyber notice and the applicable endorsement.

Can you clarify how these changes impact each product?

We designed the clarifying language to spell out Hiscox’s intent to either cover or not cover cyber incidents under each product. In most instances, the changes we are making merely clarify the intended scope of coverage. The overall impact of the language we are adding is listed below for each product:

We affirmatively add coverage for certain types of cyber incidents or loss in the following lines:

  • Technology Professional Liability
  • Directors & Officers Liability
  • Multimedia, Producers, Marketers and Advertisers

We affirmatively exclude coverage for any cyber incidents or loss (unless cyber coverage is endorsed to the policy) in the following lines:

  • Miscellaneous Professional Liability
  • Architects and Engineers Professional Liability
  • General Liability
  • Employment Practices Liability, Fiduciary Liability, Employed Lawyers Liability
  • Follow-Form Excess Liability
  • Entertainment: A more detailed communication regarding these products will be provided soon.Investment Advisors Professional Liability
What cyber solutions does Hiscox offer?

Hiscox offers cyber coverage options for your customers, which include a robust standalone cyber product and a more streamlined cyber endorsement that can be paired with eligible policies and insureds. If your customer is interested in our cyber offerings, we are happy to review our cyber appetite guide and assess your customer’s eligibility with you.

  • CyberClear: We offer a cutting edge Cyber product that can be paired with other eligible HiscoxPRO policies or offered on a standalone basis, for eligible insureds. We are happy to announce that our product is available in most states on an Admitted basis.
  • Streamlined Cyber Endorsement: We also offer a streamlined cyber endorsement which provides network security and privacy coverage for eligible HiscoxPRO insureds.
Will specimen copies of the endorsements be available?

Yes, we can provide you with specimen endorsements.

Can exceptions be made?

All policies must include explicit language addressing cyber losses. Most of today’s cyber exposures could not have been contemplated at the time many products were developed, and we are viewing this as an opportunity to remove any uncertainty for our insureds.

Who can I contact if I have additional questions?

We will continue to update our communications to you regarding the changes we are making, and you can also always reach out to your underwriter if you have any additional questions or concerns.

This broker communication is for informational purposes only. The coverage afforded by the products described herein is subject to and governed by the terms and conditions of each policy issued. This information may not be used to modify any policy that might be issued. This information is provided to assist in understanding the coverage we offer and does not modify any insurance policy, nor does it imply that any claim is covered. Coverage is made available through Hiscox Inc. d/b/a Hiscox Insurance Agency in CA, which is licensed in all states. The products described are underwritten either by Hiscox Insurance Company Inc., a Chicago-based insurer that is licensed in all 50 states and DC, or a Hiscox Syndicate at Lloyd’s, London, which is available on a surplus lines basis through licensed surplus lines brokers. The publication and delivery of this information is not intended to be a solicitation by Lloyd’s for the purchase of insurance on any US risk.