After last month’s launch of its cyber liability including professional indemnity coverage for technology companies, XL Group has announced “the launch of a second, more general cyber risks insurance solution serving mid- and large-sized companies across a broad range of industries.”
The bulletin said the new product is XL’s response “to the increasing demand for cyber risk coverage since the enactment of the Brazilian Civil Rights Framework for the Internet (Marco Civil da Internet) which aims at guaranteeing civil rights in the use of the internet Brazil.
“The product provides extensive first and third party cyber liability coverage, including financial loss and moral damages indemnity as introduced by Marco Civil da Internet, associated with claims brought by clients, regulators or representatives, including the public prosecutor (Ministério Público), resulting from a data breach.
“The policy also includes an integrated incident response element that offers first party cover for IT forensics, support from legal experts and credit monitoring as well as the costs of public relations experts to manage any reputational damage following a data breach.”
Silvia Gadelha, Senior Underwriter Financial Lines in Brazil, commented: “While globalization drives Brazilian industries forward, it also brings more threats. As one of the fastest growing internet user communities in the world, Brazil has experienced a dramatic increase in cybercrime. Poor internet usage habits, unsafe web practices as well as a thriving underground market have turned the online market into a harvesting spot for cybercriminals. According to a Trend Micro paper, of all Latin American countries, most spammed messages come from Brazil (38 percent) and the majority of malicious URLs (58 percent) are hosted here. Leveraging our global expertise in cyber risk, we’ve been able to develop an easy to read form tailored to meet the needs of Brazilian companies.”
Renato Rodrigues, XL Group’s Country Manager in Brazil, added: “The Brazilian Civil Rights Framework brings with it the real possibility of penalties for violation of data protection. Being able to offer Brazilian companies liability cover that addresses the financial and reputational issues associated with cyber risk is critical in today’s business climate.”
Source: XL Group plc