Guy Carpenter & Company LLC said it brokered a new cyber privacy and network protection coverage targeted to small-and medium-sized companies, a move that comes as cyber security violations are becoming increasingly commonplace.
The Marsh & McLennan Company and risk/reinsurance specialist pitched the product as multi-faceted. It includes an initial on-site assessment of existing cyber security capabilities designed to find system vulnerabilities and identify ways to reduce cyber exposures. That data will form the basis of a far-reaching cyber privacy and network protection insurance policy, with coverage including business interruption, privacy and security liability, crisis and event management costs, inform assets and cyber extortion. The policy will work globally and have a $50 million capacity limit, Guy Carpenter said.
As well, coverage will include remediation services if there is a cyber breach, with isolation of the cyber intruder, a shoring up of the breach and a focus on limiting business impact, Guy Carpenter noted.
Ridge Insurance Solutions Company, a Lloyd’s Managing Agency, will provide the actual cyber coverage, which will be underwritten by five Lloyd’s syndicates that specialize in cyber: Brit, AEGIS London and Novae as lead underwriters. Barbican Insurance Group and ACE round out the underwriting. Former U.S. Secretary of Homeland Security Tom Ridge is chairman of Ridge Insurance Solutions Company, according to the coverage announcement.
“Guy Carpenter is delighted to have acted as the broker of record for this innovative and expansive cyber solution,” Nick Gralton, managing director of North American Casualty for Guy Carpenter, said in a statement.
Guy Carpenter’s announcement comes days after JPMorgan Chase & Co. announced a data breach affected 76 million households and 7 million small businesses. Last month, Home Depot got smacked with another cyber security breach, affecting 56 million of its credit cards. Target suffered a similar cyber attack in 2013, a violation that Bloomberg noted touched up to 110 million customers.
Beyond Guy Carpenter, Marsh and Aon Benfield, and ACE Group have also beefed up their cyber risk policies in recent weeks.
Source: Guy Carpenter