Lloyd’s MGA CFC Underwriting has launched a new cyber liability product with wording to cover the risks of storing data in the “cloud.”
CFC identified a gap in coverage for firms that use cloud computing services and designed the new policy to include the risk of data breach at a third-party cloud provider.
“Cloud computing services are increasingly popular and undoubtedly a huge step forward,” said Graeme Newman, CFC director. “But they do present businesses with new risk exposures.”
Newman said that when a cloud service is adopted, data is effectively ‘given away’ without any type of contractual agreement to protect it. Since most cyber liability policies focus on the policyholders’ systems, these policies end up excluding the third-party coverage in the event of a breach.
The new CFC policy will cover both the policyholders’ systems and a data breach or data loss from a third-party cloud system.
The London-based CFC Underwriting provides insurance coverage in 35 countries, including the United States.