Marsh cyber coverage includes fires, explosions, machinery breakdownsPosted On: Jun. 23, 2014 12:00 AM CST
Marsh L.L.C. has launched a cyber insurance product for the energy industry underwritten by insurers and reinsurers in London and Europe.
Marsh said Monday that it hopes its product will allow commercial insurers to offer coverage comparable to the limits provided by energy industry mutual insurer OIL Insurance Ltd.
Andrew Herring, London-based leader of Marsh's energy practice in Europe, the Middle East and Africa, said most energy policies exclude coverage for bodily injury, property damage and business interruption arising from a hacking event.
Currently, he said, the coverage provided by the stand-alone cyber insurance market is geared largely toward covering losses from data breaches and the like.
But buyers increasingly are concerned about potentially catastrophic events that could arise from a lack of control caused by a hacker attack, said Mr. Herring. Because of that, Marsh has put coverage together that protects against fires, explosions or machinery breakdowns resulting from a cyber attack, he said.
The product, Cyber Gap Insurance, indemnifies the buyer in the event that indemnification is denied because of cyber risk exclusions in property, business interruption or package policies, Marsh said.
Mr. Herring said Marsh hopes to be able to achieve limits for clients comparable to the $300 million limit offered by Bermuda-based OIL, which does not exclude cyber exposures.