American International Group Inc. on Wednesday said it is offering an enhanced cyber insurance policy that covers physical damages caused by cyber attacks.
The New York-based insurer said the new product, CyberEdge PC, is meant to augment a customer's existing commercial lines insurance program and will cover both property damage and bodily injury exposures on an excess and difference-in-conditions basis.
The policy offers broad coverage limits and terms typically not available in stand-alone cyber data breach policies and can help address gaps in property, casualty, energy, aerospace, marine, environmental, health care and financial lines policies, where cyber-related exposures may be excluded or coverage too limited, the company said in a statement.
“Cyber risk goes well beyond data privacy concerns covered by stand-alone cyber insurance offerings prevalent in the market,” Tracie Grella, global head of professional liability for AIG, said in the statement. “The physical risk of a cyber attack or cyber event to property and people is very real, and it can now be specifically and unambiguously addressed with expanded cyber insurance coverage that dovetails with existing insurance.”