American International Group, Inc. (“AIG”), insurers have expanded their cyber insurance offering to include property damage and bodily injury exposures. AIG said that this offering provides commercial customers a way to manage physical risks to their operations from cyber attacks and cyber security failures.
AIG's expanded cyber insurance solution, CyberEdge PC, is a response to growing incidents and threats of cyber attacks directed at commercial industries that can lead to equipment failure, physical damage to property, and physical harm to people, the company said in a statement. It offers broad coverage limits and terms typically not available in stand-alone cyber data breach policies.
CyberEdge PC enhances a customer's existing commercial lines insurance program by providing cyber event protection on an excess and difference-in-conditions basis. The product addresses coverage gaps in property, casualty, energy, aerospace, marine, environmental, health care, and financial lines policies, where cyber-related exposures may be excluded or coverage too limited, according to AIG.
AIG's expanded cyber offering supports the National Institute of Standards and Technology's Framework for Improving Critical Infrastructure Cybersecurity. Released in early 2014, the framework is designed to help companies in critical infrastructure industries strengthen cyber risk management programs to protect information and physical assets from cyber attack.
“Cyber risk goes well beyond data privacy concerns covered by stand-alone cyber insurance offerings prevalent in the market. The physical risk of a cyber attack or cyber event to property and people is very real, and it can now be specifically and unambiguously addressed with expanded cyber insurance coverage that dovetails with existing insurance,” said Tracie Grella, global head of professional liability at AIG.
Learn more: www.aig.com.