XL Insurance, the global insurance operations of XL Group, has launched of XL Eclipse, a new comprehensive 'cyber-risks' solution especially designed for European businesses.
XL Eclipse provides cyber liability coverage, including costs associated with mandatory data breach notifications to customers and authorities, as well as civil regulatory fines and penalties.
As part of an integrated incident response element, XL Insurance said that the policy also offers first party cover for IT forensics, business interruption, extortion threat, credit monitoring and even the costs of public relations specialists to a manage reputational damage following a data breach.
The insurer said for technology products and service providers, the XL EclipsePro solution incorporates technology E&O to address their professional liabilities.
The coverage also meets the needs of electronic communication service providers facing legal exposures resulting from the European Commission’s recently amended ePrivacy Directive.
XL Insurance senior underwriter professional lines Dawn Simmons said the combination of more sophisticated criminals and stricter data breach laws results in companies facing increasing financial and reputational exposures.
"The average cost of a data breach in Europe in 2010 was approximately GBP1.9m and we expect that number to rise in the future," Simmons said.