Beazley in signature cyber coverage overhaul

Evolution of threats prompts specialist insurer to rework policy

Beazley in signature cyber coverage overhaul

Insurance News

By Ryan Smith

Specialist insurer Beazley has redesigned its market-leading cyber policy in response to the rapid evolution of cyber threats to small and mid-sized businesses.

Beazley launched its Beazley Breach Response (BBR) cyber policy in 2009. Three years later, the company established BBR Services, an in-house unit created exclusively to help clients manage data breaches.

Now Beazley has redesigned the policy because cyber risks have evolved and multiplied in the ensuing years, the company said in a press release. In particular, Beazley said, business interruption as a result of cyberattack is becoming a major concern.

The new BBR program covers the spectrum of cyber risks faced by small and mid-sized businesses, including business interruption.

“Cyberattacks – both targeted and scattergun – are on the rise,” said Mike Donovan, global focus group leader for Beazley’s technology, media and business services team. “No business is immune. To address risks, prevention and insurance must go hand-in-hand. In the new BBR, we have sought to address all the ways – new and old – in which data can be diverted, frozen, held to ransom or lost. Under the new BBR, our policyholders will also benefit from risk-management services provided by Lodestone Security, the specialist advisory firm we established earlier this year to address the unmet cyber security needs of small and mid-sized businesses.”

The new BBR policy includes:
  • A full suite of data-breach response services, coordinated by BBR Services, to identify the cause and scale of breaches, alert those affected and provide credit and identity monitoring
  • First-party coverage for cyber extortion
  • Data recovery costs
  • Business interruption resulting from security breaches and system failures
  • Contingent business interruption resulting from security breaches and system failures that occur at the policyholder’s vendors and suppliers
  • eCrime coverage for fraudulent instruction, funds transfer or telephone fraud

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