Insurer warns that that critical infrastructure is increasingly vulnerable to malicious cyber breaches, presenting the global economy with “potential catastrophic risk”
Lloyd’s insurer Brit is launching a policy to protect companies operating software-powered infrastructure and machinery from cyber attack.
Brit said that critical infrastructure, operated through complex industrial control system software, is increasingly vulnerable to malicious cyber breaches, presenting the global economy with “potential catastrophic risk”.
The company contends that to-date the insurance market has offered “inadequate security” to protect against this type of attack.
Brit’s product covers first-party property damage, business interruption, the cost of restoring digital assets and reimbursement for resultant business income losses.
It also provides cyber security risk assessment, loss mitigation and inspection services.
In creating the product, Brit partnered with US cyber security and corporate governance auditor Coalfire, which will provide third-party cyber security risk assessment.
Brit is lead underwriter of a group of Lloyd’s syndicates offering first loss limits of up to $250m (£154m) of first party cyber coverage.
Brit war and terrorism class underwriter Russell Kennedy said: “The threat from cyber attacks is a fast emerging and complex one that presents potential catastrophic risk and for which there is inadequate insurance cover. Attacks can be committed by an array of perpetrators such as terrorists, state-sponsored agents or even disgruntled employees.
“This product gives companies the vital protection and ongoing risk assessment support they need against attacks where the ramifications, financial and operationally, can be disastrous.”