London-based insurer Beazley has partnered with Marsh for the launch of tailored cyber insurance cover and breach response product aimed for US manufacturers.
The new cyber insurance cover, Manufacturer’s First Response, from Beazley and Marsh, has been designed to cater to cyber and operational risks faced by manufacturers including supply chain interruption from cyber-attacks against the insured or its suppliers, invoice manipulation resulting in payments that could be misdirected or fraudulently directed, technology disruption that can affect operational and industrial controls, hardware and/or software, e-crime losses from payment or delivery of money or securities as a result of fraud.
Beazley US middle market cyber & tech head Kristen Dauphinais said: “Manufacturers’ risk management requirements are changing as they keep pace with the digital world, with many transforming into tech companies.
“Hacking and malware were the top cause of loss for manufacturers reported to Beazley in 2018 and, as the Internet of Things and more complex supply chains have increased connectivity, they have also expanded the scope for far-reaching cyber-attacks.
“These specialist coverages will help manufacturers to more effectively manage potential threats before they take hold, robustly protect their businesses and minimize disruption caused by a cyber event.”
Beazley stated that the new cyber insurance will be available through Marsh to US manufacturers of all sizes. Manufacturers will also benefit from risk management services provided by BBR Services.
BBR Services will help its clients to respond to actual or suspected cyber breach effectively and in compliance with the law. It’s the in-house breach response services at the insurer and is touted to have helped thousands of clients in managing cyber breaches.
Marsh US cyber practice leader Thomas Reagan said: “Manufacturing is among the fastest growing segments purchasing cyber insurance today with a growing number of manufacturers acknowledging that cyber risk is an operational risk that needs to be managed.”
Marsh US manufacturing & automotive industry practice leader David Carlson said: “With the launch of Manufacturer’s First Response, Marsh is responding to its manufacturing clients’ requests for tailored, next generation cyber coverage to help them manage today’s fast-evolving cyber risk landscape.”
Recently, Beazley launched Cyber & Executive Risk, a new division, by combining the cyber and executive risk divisions. These two divisions are claimed to have a little over a quarter of the company’s gross written premiums last year, but also include some of the fastest growing products, Beazley Breach Response (BBR), and – within its executive risk product suite – M&A transaction liability insurance, the company claimed.