Marsh said it has launched Cyber Gap Insurance to fill long-standing coverage holes in current policies for the global energy sector.
Existing cyber insurance policies fail to provide adequate protection energy firms require against losses associated with bodily injury, property damage and business interruption from a hacking event, the broker said. Cyber Gap Insurance closes this 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.
Andrew Herring, leader of Marsh’s Energy Practice in Europe, the Middle East and Africa (EMEA), 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 said its Cyber Gap Insurance is the first of its kind and was developed in collaboration with leading insurers in the London and European markets and industrial control system security specialists.
“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,” said Herring.