Amid this threat, the implications for business owners and employees are substantial, but added protection is on the way. The Hartford Financial Services Group, Inc., one of the nation's largest diversified financial services companies, now offers expanded identity recovery coverage, a feature already built into most of its Spectrum small business policies, at no additional cost to the business owner. The expanded coverage now provides identity recovery for not only the business owner but also its full-time employees.
Conducting business without identity recovery coverage brings real risk. It is estimated that on average, victims of identity theft spend 60 hours and $1,200 rectifying the situation. Can a business owner afford that employee's absence while the matter is resolved? And the personal toll is also substantial. Many victims spend years trying to work through the economic residue of this activity.
One key tool for addressing the problem is Spectrum. Spectrum is The Hartford's industry-leading business owner's policy, which provides a full breadth of coverage and is available to more than one thousand different types of businesses. Spectrum can also be customized even further with a number of industry-specific endorsements and options to fit a variety of industries.
"We are always working to develop and offer innovative solutions for our small business customers. Helping policyholders and their employees recover quickly from the plague of identify theft is another way The Hartford is helping small businesses address unique challenges that spring from advancements in technology," said Ray Sprague, senior vice president of The Hartford's Small Commercial business segment.
While some identity theft insurance products only cover out-of-pocket expenses, The Hartford's policy enhancements also address an even larger problem: the time and hassle required to correct the problem. The Harford's recovery counseling service can cut the time it takes for an identity theft victim to resolve their issues. The Hartford's service starts by guiding victims through important steps needed to correct credit history and identity records.
Other Benefits of The Hartford's Identity Theft Coverage:
-- Help with Reimbursement for Lost Wages, Child and Elder Care - Meeting with law enforcement, creditors, financial institutions and others to identify errors and correct records may require time away from work or family. The Hartford can help to reimburse for lost wages and the cost to provide alternate child or elder care. Reimbursement of these expenses is subject to a daily limit of $250 and a total limit of $5,000.
-- Mental Health Counseling - Victimization from identity theft shares after-effects of other types of assault, including emotional distress. The Hartford's program provides coverage for mental health counseling, with coverage subject to a limit of $1,000.
-- Coverage Provided for Identity Theft Committed by a Family Member - According to the Federal Trade Commission, 9 percent of all identity theft victims indicate that a family member was the person responsible for misusing their personal information. Coverage has been expanded to include identity theft committed by a family member.
-- Misuse of Valid Bank Accounts or Credit Cards - According to the Federal Trade Commission, 67 percent of all victims said they had an existing credit card account misused and 19 percent said their existing checking or savings accounts were misused. The definition of "identity theft" has been expanded to include