SIR is a proactive indemnification policy that provides businesses with a comprehensive corporate security and business integrity solution. This product establishes a contractual mechanism, which allows Hiscox to pay, on behalf of the insurance buyer, all of Control Risks’ fees and expenses incurred while assisting an insured with the management of complex issues throughout the readiness, response, and recovery phases.
Control Risks’ services can be called upon by the insured not only following an incident but also upon suspicion, imminent threat, or allegation of an incident.
The SIR policy provides access to Control Risks’ specialist consultants to support the policyholder in managing, mitigating, or eliminating any event listed within the six security and integrity risk categories.
SIR provides cover for the following insured events:
Risk mitigation fund: 20% of the premium immediately made available to the policyholder is allocated towards Control Risks’ risk mitigation and prevention services.
Evaluation and assessment: Cover for 20 days for Control Risks to conduct an initial analysis, assessment, and preliminary investigation of facts. If Control Risks determines that the event has likely occurred or concludes that there is clear and imminent danger of an event occurring, the full cover will trigger as follows:
Hiscox will cover the costs incurred by the policyholder for the temporary containment, protection, and remediation measures as follows:
Marsh worked with Hiscox to develop a proprietary version of the Security Incident Response product. The Marsh-specific product features broader coverage and lower costs. Marsh clients will receive expanded coverage for no additional premium, including:
Marsh clients can benefit from a loyalty discount that reduces open-market premiums quoted for first and second renewals by 5%. Marsh clients that move their kidnap and ransom policies to Hiscox will also get a 5% discount on those policies, while current Hiscox K&R policyholders will receive a discount of between 3% and 5% on their SIR premium.
Several other policy enhancements are also available to Marsh clients, including the ability to cancel the policy mid-term, which can facilitate the acquisition of premium financing.
This means the SIR policy can mitigate the impact of an ongoing incident or allow it to be averted altogether, potentially reducing claims on other more costly insurances.