In recent years, a major threat—particularly for manufacturers, utilities and industrial companies—is cyberattacks that disable a company’s systems, which are often accompanied by an extortion demand. Beazley responds by enhancing InfoSec to offer a broader range of coverage options.
PRODUCT: Beazley InfoSec
COMPANY: Beazley Insurance Company, Inc. and Beazley Syndicates at Lloyd’s 623/2623
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through Beazley-appointed brokers.
FOCUS: When Beazley first launched the Beazley InfoSec policy in 2006, the primary concern of policyholders was third-party exposure resulting from loss of personal customer data.
In recent years, however, a major threat—particularly for manufacturers, utilities and industrial companies—is cyberattacks that disable a company’s systems, which are often accompanied by an extortion demand.
Beazley responds by enhancing InfoSec to offer a broader range of coverage options.
“Companies with a Beazley InfoSec policy will have access to a comprehensive set of solutions created to help protect themselves on all fronts from the dangerous world of cyber risks,” explains Bob Wice, U.S. focus group leader, technology, media and business services, Beazley.
Wice adds that Beazley has been a “pioneer in the cyber insurance market” since 2007. After introducing the Beazley Breach Response policy in 2009, the company’s in-house response services team—Beazley Breach Response Services—has handled thousands of data breaches for insureds in a wide array of industry segments, including health care, higher education, retail, hospitality, financial services and manufacturing.
COVERAGE DETAILS: In the event of a breach, InfoSec covers the fees and costs associated with legal and forensic services, notification services, call center services, credit monitoring, identity monitoring or other personal fraud or loss prevention solutions, and public relations and crisis management.
In addition, the new and improved Beazley InfoSec policy now includes:
- First-party coverage for cyber extortion.
- Data recovery costs.
- Business interruption resulting from security breaches and system failures.
- Contingent business interruption from incidents occurring at the policyholder’s vendors and suppliers.
- E-crime coverage for acts such as fraudulent instruction, funds transfer and telephone fraud.
- Criminal reward coverage.
Finally, InfoSec also “indemnifies an insured’s losses from lawsuits or regulatory actions—the risk of which may be reduced by a well-coordinated breach response, but can never be completely eliminated,” Wice explains. “Beazley’s claims team has been at the forefront of defending clients in the developing and evolving legal arena of privacy class actions and regulatory investigations arising from cyber breaches.”
Insureds also gain access to pre-breach and risk management services from Beazley Breach Response Services and Lodestone Security, Beazley’s wholly owned cybersecurity consulting company, at negotiated rates.
UNDERWRITING: Rate factors include insured revenues and industry segments.
MINIMUM PREMIUM: N/A.
TARGET: All industry segments. “Any organization with exposure to data loss or computer system down time is a target insured,” Wice says.
COVERAGE TERRITORY: Worldwide.
COVERAGE AVAILABILITY: U.S.
CONTACT: Bob Wice, U.S. focus group leader, technology, media and business services, Beazley; 30 Batterson Park Road, Farmington, CT 06032; 860-677-3779.
Jacquelyn Connelly is IA senior editor.
