UK-based National Insurance and Guarantee (NIG) has launched a new cyber insurance product, Cyber Cover, to cater to the cyber insurance needs of the customers.

The new cyber insurcane product provides coverage for both first and third-party risks.

Under the new policy, the firm is offering mandatory cover for cyber crime, cyber liability and data breach expense.

In addition, the policy provides optional cover for hardware, data corruption and loss of business income induced by a cyber event.

NIG underwriting and pricing director Justin Clarke said: "We’re extending our product range to cover against new and changing risks faced by SMEs.

"Dependent on customer needs, this product provides mandatory and optional covers, the latter including loss of business income following a cyber event."

NIG broker markets director Steve Scott said: "This launch not only responds to customers’ needs, but also to our brokers who have requested a cyber product."

NIG, which is a wholly owned subsidiary of Direct Line Group, provides personal and commercial insurance services across the UK.

The firm markets its products exclusively through a network of around 2,200 insurance brokers in the country.