Chubb’s London office announced the availability of cyber security insurance through its Lloyd’s Syndicate, Chubb 1882. It is “based on Chubb’s successful US offering, the product combines third-party (cyber liability) and first-party (cyber crime expense) coverage into one worldwide policy,” said the announcement.
Chris Pavlou, Chubb 1882 Professional Indemnity Class Underwriter, commented: “Any company that collects, stores or transmits personal or confidential data can expect to suffer a network security or privacy loss – be it from an employee leaving an unencrypted laptop or data stick on a train, to a full blown attack by professional and criminal hackers.
“Whatever the cause, a network security or privacy loss can result in significant financial impact due to customer notification and monitoring/restoration costs along with crisis management expenses such as legal compliance and forensic investigation costs. In addition, network security and privacy losses pose huge reputational risks to a company, so specialist PR consultants and advertising firms may be needed to help contain the damage.
“In the US, cyber security insurance is a cover that has grown rapidly year on year – primarily driven by a legal requirement in most US states (and certain federal compliance regulations) to notify clients of any data breach. With an evolving legal and regulatory environment in the US and Europe comes increased accountability, scrutiny and responsibility for safe-keeping of personal and confidential data.”
The introduction of the cyber security offering through Chubb 1882 follows the launch of the cyber security product through Chubb Insurance Company of Europe’s company operation in 2011.
Kevin Docherty, Chubb 1882 Active Underwriter, added: “Introducing a Cyber Security product is an important stage in the Syndicate’s development. With this latest addition to our product range we are drawing on the expertise Chubb has developed in this sphere, and as demand for the product grows in the coming years, Chubb 1882 will be well positioned to meet the needs of clients and brokers alike.”
Source: Chubb Group