2017 Innovation Awards: Chubb Global Cyber Facility and Property and Casualty EndorsementsPosted On: Oct. 2, 2017 12:00 AM CST
Chubb Ltd.’s Global Cyber Facility and Property and Casualty Endorsements, a 2017 Business Insurance Innovation Awards winner, enables risk managers to close gaps in their firms’ insurance portfolios to provide certainty of cyber coverage for financial, casualty and property losses.
The offering is also intended to encourage risk managers to ask questions on the cyber issues within their insurance portfolios and evaluate cyber-triggered events, including where potential losses exist.
Michael Tanenbaum, New York-based executive vice president at Chubb, said that while cyber insurance “was hitting on some solutions” to address cyber risk, “risk managers could not provide contract certainty in terms of cyber,” including with respect to financial loss protection and perhaps some elements of business interruption.
There are questions, for instance, as to what happens if a cyber incident leads to damage covered by traditional property policies, Mr. Tanenbaum said. While some markets will cover it, others say it is excluded, and yet others offer sublimits. “We don’t want uncertainty for our clients,” he said.
The “same holds true” with casualty coverages if a bodily injury results from a cyber attack, he said. The concept is applicable to construction and environmental risks as well, he said.
“We don’t want our clients to worry about how much coverage they have,” he said. “We want to make sure there’s certainty surrounding it.”
What was needed, said Mr. Tanenbaum, was a “holistic solution” for cyber exposure.
It is a matter of “taking traditional policy triggers and making sure the cyber peril gets picked up,” he said.
Chubb’s suite of endorsements for the Global Cyber Facility, which was introduced in February:
• Enables policyholders to customize their existing insurance portfolio to close gaps related to their cyber exposures.
• Has a casualty endorsement that provides difference-in-conditions insurance to the scheduled casualty lead umbrella for cyber events, including provisional protection in the event of coverage disputes.
• Has a property endorsement that provides both difference-in-conditions and difference-in-limits insurance to the scheduled property policy for loss or damage related to cyber events.
• Includes experienced claims management, with the ability to access Chubb’s Cyber Incident Response team if preferred.
• Offers risk managers a single point of contact to help manage cyber-related exposure across multiple lines of insurance.