Axa XL addresses cyber business interruption exposuresPosted On: Apr. 24, 2019 2:02 PM CST
Axa XL, a division of Axa SA, on Wednesday said it has created a first-party cyber insurance option to help U.S. businesses cover business interruption exposures resulting from a cyberattack.
The endorsement is available to businesses that buy 100% of their property coverage from Axa XL, the company said in a statement.
Businesses that add the cyber option to their property policy will be covered for losses arising from business interruption and extra expense due to a cyber breach, data recovery, cyber extortion and ransomware, data breach response and crisis management, the statement said.
Limits up to $15 million are available under the cyber option, a spokeswoman said.
“Our clients will now have the confidence to know that their business interruption exposures are adequately managed with coverage for cyber and property on one policy form providing a comprehensive solution for first party loss and a streamlined claims process,” Michele Sansone, president of Axa XL’s North America Property insurance business, said in the statement.
Traditional business interruption is caused by physical damage from a named peril like a windstorm, fire or flood, said John Coletti, Axa XL’s chief underwriting officer for cyber and technology in North America. “With no physical damage per se, business interruption from a cyber event can be caught in a gray area. This coverage offers clarity,” Mr. Coletti said in the statement.
Businesses that choose to add the first-party cyber option to their property policy will also have access to a range of cybersecurity services, Axa XL said in the statement.