American International Group is launching a new line of insurance policies to cover cyberattack risks, including property damage, bodily injury, business interruption, and product liability, the company said. The company had already offered insurance to cover risks related to data breaches, but says the new line of policies is the first primary coverage written by any carrier in a standalone policy specifically to cover these areas of cyber-related risk.
"Cyber is a peril," Tracie Grella, global head of cyber risk insurance at AIG, said in a statement, "can no longer be considered a risk covered by a traditional network security insurance product."
The policy, CyberEdge Plus, arrives amid a boom in cyber insurance driven by a growing concern over cyber threats, and some confusion among CIOs over how policies work and what they cover. AIG's new policy aims to clarify and expand coverage for specific harms. "Coverage limits are available up to $100 million, "but will depend on industry, risk management controls, capacity already exposed to a particular risk and ventilation between layers," said Grella.
[AIG's CyberEdge policy. Image: AIG]
German insurer Allianz said last week that cyber-related policies have been slow to see signups by European companies, though it predicted more stringent data breach reporting laws would lead to increased demand, Reuters reported . SM