Cyber insurance gap

Increasingly sophisticated hacker networks are targeting the energy sector the world over. Existing cyber insurance policies are however failing to provide adequate protection that energy firms require against losses associated with bodily injury, property damage and loss of use.

Marsh has launched its Cyber Gap Insurance, to aid energy firms’ effective management of cyber risks. The first of its kind, Marsh’s Cyber Gap Insurance has been developed to collaboration with leading insurers in the London and European markets and industrial control system security specialists.

Exclusion clauses in standard commercial insurance policies stipulate that cover will not be provided for bodily injury, property damage and business interruption arising from a hacking event. Marsh’s Cyber Gap Insurance closes the gap by indemnifying the insured in the event that indemnification under the normal property, business interruption or package policies is denied, solely due to the existence of any of these cyber risk exclusions.

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Andrew Herring, Leader of Marsh’s Energy Practice, Europe, Middle East and Africa said, ‘to date, the cyber attacks directed at the global energy sector have largely been untargeted and data driven, as companies and individuals have attempted to gain access to personal or sensitive financial data.

‘However, the nature of the threat is changing and energy firms are now the target of increasingly sophisticated cyber attacks. The disproportionate rate at which the sector is targeted means it may only be a matter of time before we experience catastrophic physical damage to facilities or disruption to supply as a result of a cyber related event.

‘Marsh’s Cyber Gap Insurance closes the gaps in existing coverage that have existed for over a decade, enabling energy firms to develop and implement more comprehensive risk mitigation and risk planning strategies to protect their people and assets.’

Adapted from press release by Claira Lloyd

Read the article online at: https://www.worldpipelines.com/product-news/23062014/cyber_gap_insurance_from_marsh/