The rush to address the ever-changing cyber landscape has continued today as Arthur J
Gallagher announced the launch of a bespoke manufacturer cyber solution.
Just one day on from
Marsh revealing its own new cyber product (see
article), another brokerage giant has made a significant market move with Gallagher developing a custom wording in conjunction with manufacturing trade bodies and global Fortune 500 companies in an effort to closely match emerging exposures.
Backed by strategic partner
Brit Insurance, the Gallagher’s Manufacturers’ Cyber Policy indemnifies against property damage and bodily injury exposures resulting from a control system interruption, typically excluded from other cyber policies. In addition, the policy also offers bespoke cover for increased cost of working, contractual penalties and contingent direct supplier interruption due to a cyber-attack, usually excluded from property policies.
Talking about the proposition, Tom Draper, technology and cyber practice leader at the firm, outlined that solution offers an effective response in a new era of cyber risk.
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“The connected world has been embraced by manufacturers to deliver significant efficiencies and advances,” he said. “But with that connectivity comes new threats - such as the convergence of industrial control systems with ‘hackable’ enterprise systems which poses a potentially catastrophic risk.
“On top of that, manufacturing is now one of the most frequently hacked industries, second only to healthcare - largely due to the volumes of intellectual property held by manufacturers or through corporate espionage.”
Despite this growing threat, exclusions on general liability and property policies for cyber are leaving manufacturers exposed to some of their most prevalent risks, he explained.
“So we tackled this vulnerability head on, designing a global policy to bridge these gaps while also offering loss mitigation services through independent security consultants to provide end-to-end risk protection,” he said.
Related stories:
The rise of ransomware: what should brokers know?
Insurers on standby as “aggressive” cyber breaches surge
