Lloyd’s Syndicate Silent Cyber FAQs

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

Lloyd’s of London has mandated that as of January 1, 2021 all Syndicates, including Hiscox, must affirmatively address whether they will provide coverage for cyber incidents in their policies. Hiscox is committed to using this opportunity to clarify coverage for our customers.

What about accounts written on an Admitted basis (Hiscox Insurance Company Inc., “HICI”)? Will those contain similar changes?

Hiscox is committed to providing clarity regarding coverage for cyber incidents in all of our policies. We will be introducing new language for our Admitted business in 2021. At this time, only our Surplus lines policies written on Syndicate paper will be impacted.

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

You will receive a new version of our renewal solicitation letter for all policies coming up for renewal as of January 1, 2021. It will explain our intent to either cover or exclude cyber incidents under the policy. At the quote and bind stages, the letters will also 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 also attach to the quote letter and binder.

How will automatic renewals be impacted?

Policies eligible for automatic renewal will not be removed from our automatic renewal process. We will send a new version of our automatic renewal solicitation for all policies set to renew as of January 1, 2021, which will explain our intent to either cover or exclude cyber incidents under the policy. 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 in our language 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:

  • Allied Healthcare Professional Liability
  • Technology Professional Liability
  • Directors & Officers Liability
  • Multimedia, Producers, Marketers and Advertisers
  • Financial Services Management Liability and Professional Liability products

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
  • Creative Industries Media and Professional Liability
  • Follow-Form Excess Liability
  • Investment Advisors Professional Liability
What cyber solutions does Hiscox offer?

Hiscox offers a robust standalone cyber product and a more streamlined cyber endorsement. 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: Our cutting-edge cyber product can be paired with other eligible HiscoxPRO policies or offered on a standalone basis, for eligible insureds. This product is available on either a Surplus lines or, in most states, an Admitted basis.
  • Streamlined Cyber Endorsement: Our streamlined cyber endorsement provides network security and privacy coverage for eligible HiscoxPRO insureds.
Will specimen copies of the endorsements be available?

Yes, below is a list of the available endorsements.

Silent Cyber Endorsements:

Form Name Applicable Product(s)
Cyber Incidents (Family Offices) FS Family Office Liability
Cyber Incidents (RIA) FS Investment Advisers
Cyber Incidents - FS All other FS products
Cyber Incidents (C-Suite) All C-Suite products
Cyber Incidents (E&O) Legacy E&O Products
Cyber Incidents Exclusion (Recognition of Erosion) Exec Risks Excess
Cyber Incidents (MM,MAC,VFT) Media, MAC, VFT
Cyber Incidents (Associations) Hiscox Pro Associations
Cyber Incidents Clarification (PL) Hiscox Pro MPL and ANE
Cyber Incidents (Accountants) Hiscox Pro Accountants
Cyber Incidents (AHC) Hiscox Pro AHC (all)
Cyber Incidents Exclusion (Recognition of Erosion) E&O Excess
Cyber Incidents (GL) Hiscox Pro GL
Cyber Incidents (Creatives) Hiscox Pro Creatives
Cyber Incidents (Technology Liability) ClearTech
Cyber Incidents (Tech) HHiscox Pro Technology Liability

 

Can exceptions be made?

All Lloyd’s Syndicates, without exception, are required to comply with this mandate. 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?

You can reach out to your underwriter with 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.