MGA launches parametric coverage for cyber risks

Descartes Insurance said Thursday it would offer companies in France parametric-based coverage for cyber risks with limits of €5 million ($5.4 million) per policy.

The trigger for the cyber shutdown coverage is a “cyber encryption incident” as part of a ransomware attack “as evidenced by the encryption of an initial file stored on a computer, server or (programmable logic controller) administered by the insured company,” a spokesman for Descartes said.

Third-party cyber specialists will determine whether an attack has taken place.

The policy is designed for small- and medium-sized businesses and offers coverage based on pre-defined daily limits for business interruption losses, according to a statement from the insurer, which is a unit of Paris-based Descartes Underwriting SAS.

Claims will be paid within three weeks, the statement said.