SECURITY
INCIDENTRESPONSEREADINESS, RESPONSE
AND RECOVERY.

What we do
For over 25 years Hiscox has been supporting clients to manage complex security
issues and crisis events that threaten people, assets, business operations andreputations. Our exclusive partnership with Control Risks brings together renowned
insurance expertise and unparalleled security risk and crisis management capability.
A unique security solution
The Hiscox Security Incident Response (SIR) policy is designed to support clientswith the management of complex issues throughout the readiness, response andrecovery phases. The policy gives immediate access to the expertise of Control Risks
to help manage a wide range of insured events. SIR clients are also reimbursed forthe costs incurred in dealing with these events. By enabling the activation of the policy
in advance of a crisis, clients can use SIR to increase their resilience to unforseeable
and unbudgeted critical events.
How it works
There are four ways in which the support of the SIR policy can be triggered:
1. on the occurrence of an insured event;2. on the suspicion of an insured event having occurred;
3. when there is an imminent threat of an insured event;4. on the allegation of an insured event having occurred.
These early stage triggers are crucial tools that enable clients to mitigate risk andmanage complex events before they become crises.

The Hiscox
Security Incident
Response (SIR)
policy helps
clients to manage
potentially criticalincidents across
six risk areas.

Continuity and property risks
Act of terrorism, blockade, civil commotion,
civil war, commercial retaliation, coup d’état,insurrection, rebellion, revolution, riot, maliciousdamage, sabotage, occupation, producttampering, unauthorised property access, war.
Personnel risks
Abduction, assault, detention, hijack,hostage crisis, missing person, murder,
radicalisation, stalking, cyberstalking,suspicious death, threat, workplace violence.
Political risks
Confiscation, deprivation, expropriation,nationalisation, illegal seizure.
Compliance, fraud and reputation risks
Agent misconduct, competitor malfeasance,
contract and procurement fraud, counterfeiting,criminal facilitation, defamatory allegation,embezzlement, financial statement fraud,internal bribery and corruption, malicious
prosecution, money laundering.
Cyber and information risks
Cyber compromise, cyber threat, industrial
espionage, proprietary information theft,social engineering, unauthorised disclosure.
Extortive risksBlackmail, boycott, bribery demand, cyberextortion, extortion, kidnap.

Why choose Hiscox?
We have helped policyholders manage
thousands of crisis events in the last
25 years, drawing on Control Risks’42 years’ experience of complex
security and integrity issues. Together
we are the global leaders in this sector.

Using the policy
1. Policy integration session
After purchasing SIR, a client
will have a policy integration
session with Control Risks.
This will highlight the scopeof Control Risks’ services andassist with the integration of SIR
into any existing security risk
management framework.
2. Risk mitigation allowance
SIR clients can use a percentageof their policy premium on
resilience-building activities
with Control Risks.
3. Preliminary investigation
Hiscox will pay for the servicesof Control Risks to conduct
early stage evaluation andassessment at the first signsof a developing issue.
4. Response and recovery
When an insured event has occurred,or is imminent, Hiscox will cover thecosts of Control Risks on an unlimited
basis where there is a risk of bodily
injury, and for up to 60 days otherwise.
5. Response andrecovery expenditure
The SIR policy reimburses a
range of the costs incurred in
responding to insured events.
This may include temporary
physical security measures
and/or the costs ofdeployment of internal
security resources.

6. Endorsement
Optional enhancements to include
readiness, response and recovery
expenses, such as those used for
public relations following an insured event.

Indicative engagement during policy term

Crisis management activity

60 days’ response and recovery
Unlimited when threat of bodily injury

Riskmitigation
allowance

20 days' preliminary
investigation

All Control Risks'
services are billed
directly to Hiscox.
Hiscox will reimburse
reasonable costs associatedwith responding to an incident.

Trigger event
Day 0

Returning tobusiness as usual

Day 20Time

SIR core benefits
Provides peace of mind to senior management that they havethe resources in place for dealing with unforeseen events.
Immediate access to leading incident management support,
on a global basis, for a fixed premium.
Complements and reinforces existing incident management
and enterprise risk management structures including otherinsurance policies.
Helps build organisational resilience by providing a risk
management allowance that can be used for preventing
and mitigation risks.
Demonstrates to stakeholders that duty of care obligations
have been considered and that anti-fraud and anti-corruption
measures are in place.

How does SIR fit into risk transfer?
SIR is designed to complement other insurance lines. The pre-incident triggers mean thatthe policy can be activated before other insurance policies and potentially reduce claims
made against these. Where indemnity policies may have deductibles, SIR can fill the gap,
providing support immediately.
Crisis impacting
your organisation

SECURITY INCIDENT RESPONSE
first line of defence
Deductible
Deductible

Directors
and officers’

Deductible

Politicalrisks

CyberIndemnity policies

Deductible

Political violence/terrorism

Case studies
Act of terrorism
A marauding terrorist firearms attack occurs in a European city, leading to security
forces implementing a regional lock down. A company activates its invacuation
procedures and initiates its crisis management team. Co-ordinating closely with thecompany’s crisis management team, Control Risks provides initial and immediateadvice as well as regular updates on the locations of the terrorists and security forces.
Control Risks activates an executive protection team in the city to provide immediate
assistance and security for company personnel. Additionally, on an ongoing basis,
Control Risks provides live updates from the on-the-ground team confirming thesafety of company personnel and the return to normal of transportation links. The
client is provided with an after-event report, including a timeline of client decisions
and the context in which they were made.
Procurement fraud and industrial espionage
An oil services company receives a tip-off that local contractors are providing
sub-standard materials and are leaking work plans to a competitor. Following a crisis
meeting, the client triggers their SIR policy based on the allegations and seeks Control
Risks’ guidance on the options open to them. Control Risks carries out a stakeholder
mapping exercise and identifies family links between the local contractors and acompetitor company. Under Control Risks’ guidance, a series of tests on theconstruction materials are commissioned discreetly and conducted away fromthe site itself. Control Risks works with the client’s appointed local legal counsel
and supports the collection of the available evidence. After several planning meetings
with legal counsel and analysis by Control Risks specialists of the local power/influence
dynamics, a decision is taken not to pursue legal action as a first option, but to present
the evidence to the competitor organisation – who subsequently decline to bid on thefuture work. The local contractors are dismissed and alternatives appointed. Additionalsite security is implemented around the site offices and all sensitive commercial
documents are removed from the site. Work is able to continue successfully.
Riot/civil commotion
A financial services client with offices and customer-facing branches in Paris hasproperty damaged during the first of the ‘yellow vest’ protests. As the rhetoric aroundthe protests intensifies, and it becomes clear that future protests are being organised,
the client’s CSO triggers their SIR policy on the imminence of civil commotion. Control
Risks provides advice to the CSO and her team on the protection of premises andpersonnel during these types of incidents. Control Risks are also able to advise on thetechnical specifications of improvements works to their premises in advance of eachof the protests over the subsequent four weekends. The client is enabled to continue
their business, at a slightly reduced level, throughout the period of unrest, and todeliver a positive message to employees and customers that they have protected
their interests, as well as those of the company itself.
Email sir@hiscox.com for more information.

20926 02/22