Damien Stephen, manager, digital liability solutions at Brooklyn, told Insurance Business, that the move was made with brokers in mind.
“Having the Brooklyn cyber policy move on to the online platform is a natural progression for any of our Brooklyn policies,” Stephen said. “Our brokers have always been keen on seeing our products move online. It will improve their productivity as well as ours.”
The online offering is designed for SME companies with up to a $3 million turnover but Stephen said that the underwriting agency can still look to SMEs above that threshold on a referral basis.
“The type of clientele we are looking at is really quite broad with regard to occupation class,” Stephen continued, noting that a large range of occupations from interior designers to financial services can take up the cover.
The Brooklyn product offers business interruption cover, with a 12hr retention time, up to a $500,000 limit on crime, a 24-hour incident response hotline and capacity up to $20 million. The cover also includes cyber extortion and terrorism as Stephen said the firm is looking to highlight this pair of risks that SMEs are often not aware they face.
“We see cyber extortion and terrorism as a real, clear and present risk that SME clients face while operating their business,” Stephen continued.
“The cyber extortion cover relates to extortion expenses which are demanded in relation to a credible threat against a client whereby they might be threatened to have their data damaged or destroyed or even the threat of having their own information and data pushed out to the public space. The cyber terrorism cover relates to income and interruption expenses caused by what we call an act of cyber terrorism.”
With mandatory breach notification looming large, Stephen said that even for those businesses that do not meet the $3 million turnover requirements of the legislation, cyber insurance and good cyber practice will become increasingly important.
“Even though some companies are saying they are not about the $3 million threshold, anything to do with health information won’t be subject to the $3 million,” Stephen continued. “And the business’s clientele will still want to know. They won’t take an acceptable answer of ‘you aren’t above $3 million so you didn’t want to tell me’ - that is not going to fly.”
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Brooklyn Underwriting has announced that it has made its cyber data protect policy available online.