Guy Carpenter & Company is launching a cyber privacy and network protection solution, which the group said is designed to meet the unique cyber challenges faced by small- and medium-sized companies.
The global risk and reinsurance specialist, part of the Marsh & McLennan Companies, added that the cyber solution is provided by Ridge Insurance Solutions Company (Ridge), a new managing agency at Lloyd’s of London.
Ridge is led by the Honourable Tom Ridge, the first US secretary of homeland security and 43rd Pennsylvania governor, as chairman. The solution is underwritten by five leading Lloyd’s syndicates in the cyber arena: Brit, AEGIS London and Novae as lead underwriters, and Barbican Insurance Group and ACE.
The product offers three components which “are designed to help organisations meet the cybersecurity challenge head-on”:
- An initial on-site assessment of existing cybersecurity capabilities is conducted by the Ridge assessment team to expose potential system vulnerabilities and provide recommendations to reduce cyber exposures. Compliance with the recommendations will directly affect the premiums charged for the insurance component of the solution.
- Cyber privacy and network protection insurance policy provides the central component of the solution. Spanning a spectrum of coverage types, the policy includes: business interruption coverage; privacy and security liability; crisis and ‘event’ management costs; information assets and cyber extortion. The policy provides coverage on a worldwide basis with a capacity limit of US$50m.
- The final component provides remediation services in the event of a cyber breach. The solution will deliver a rapid and robust response to any form of cyber intrusion, quickly isolating the intruder, shoring up the breach and limiting the business impact.
“Insurance need not be just a ‘policy’ written by an agent, but a true focal point for assessing, identifying and correcting the impact of cyber risk on your business,” said Gov. Ridge. “This is not just about insurance, but helping and incentivizing companies to manage their cyber operations more effectively.”
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