Lockton Launches Silent Cyber Property Solution for Businesses

Lockton, the privately-owned independent insurance broker, has launched its Silent Cyber Property Solution, a standalone policy that covers businesses against property damage and ensuing time element losses resulting from cyber-attacks or cyber terrorism.

The broad-form policy is unique in the market, blending the standard wording found in both property and cyber policy forms, the broker said.

Lockton’s Silent Cyber Property Solution can be purchased through an exclusive program designed by Lockton, together with one of London’s leading cyber and property consortium. Insurance buyers will be able to purchase program limits of up to $150 million per occurrence and in the annual aggregate with the potential for additional market capacity, as necessary.

The coverage is offered globally, except for buyers or exposures emanating in China and Israel, a Lockton representative said, noting that these two countries are excluded from the coverage due to underwriter risk exposure concerns. “Coverage can also be purchased for insureds outside of the U.S. who may not have a global footprint,” the representative continued.

Lockton’s Silent Cyber Property Solution also provides coverage for extra expense, loss of rent, prevention of access, protection and preservation of property, debris removal, fire brigade charges, expediting expense, extended period of indemnity, interdependency, and spoilage with the additional capability of adding contingent time element and/or service interruption to the policy form.

Lockton explained that the physical damage and ensuing time element coverage gap within the property market can be very costly for businesses to recover in the event of a cyber attack or cyber terrorism. With global cyber-crime costs expected to grow by 15% per year over the next five years, up from US$3 trillion in 2015 to US$10.5 trillion annually by 2025, the need for insurance buyers to prepare for this risk is only accelerating, the broker said.

“We’re very proud to be bringing a unique broad form resulting physical damage and ensuing time element cyber protection product for businesses to the market. There is a growing list of businesses who have suffered from increasingly sophisticated cyber-attacks, and now, Lockton provides a distinctive property solution which can better protect insurance buyers from both physical damage and ensuing business interruption losses as a result of a cyber-attack or cyber terrorism,” commented Greg DiPrato, senior vice president, Lockton Global Property Practice.

“While many insurance buyers assume their physical property and ensuing time element exposures are covered by their existing property insurance policies against cyber-attacks or cyber terrorism, this is very often not the case due to the increasing application of cyber exclusions within all risk policies,” he added.

Source: Lockton

Topics Cyber New Markets Property