XL Group's cyber and technology business in North America has introduced a new insurance policy that extends protection to businesses that are growing more concerned with cyber and technology risks.
“Businesses do not have to look very long or hard to find instances of cybercrimes and security breaches. It is happening every day – most recently the FBI is investigating several coordinated attacks carried out on several financial institutions that could have resulted in the loss of gigabytes of information including checking account information,” according to John Coletti, the chief underwriting officer for XL Group's cyber and technology insurance business. “As a result, businesses are growing more concerned not only about what the cost of a breach can do to their bottom lines, but what risks it poses to their reputation and customers' trust as well.”
According to the company, its cyber insurance policy provides both liability and first party protection after a company sustains a data breach, including both the legal and voluntary data breach notification and crisis management costs, loss of business income, costs to recover data, costs to respond to regulatory inquiries or an investigation and costs to defend and indemnify any subsequent third party claims including class action claims.
“In many instances businesses are unaware that an activity is conducted in violation of a privacy law. While cyber insurance has largely been about data breach response, our product is designed to protect our insureds should they inadvertently violate a privacy law,” said Scott Schleicher, the underwriting manager for XL Group's cyber and technology team.
Expanded coverage includes:
- A coverage extension for outsourced providers including cloud providers
- Expanded privacy and security protection to include confidential business information in addition to protected health information and personally identifiable information
- Enhanced privacy regulatory coverage, including consumer redress amounts
- Payment card industry fines and assessments coverage can be added by endorsement
XL Group's cyber coverages are provided by an XL Group insurance company, Indian Harbor Insurance Company.
Learn more: xlgroup.com/insurance.