Cyber liability coverage includes costs associated with mandatory data breach notifications
On June 6 at the Airmic conference XL Insurance announced the launch of XL Eclipse, a “cyber-risks” solution designed for European businesses.
XL Eclipse provides cyber liability coverage including costs associated with mandatory data breach notifications to customers and authorities as well as civil regulatory fines and penalties.
As part of an integrated incident response element, the policy also offers first party cover for IT forensics, business interruption, extortion threat, credit monitoring and the cost of public relations specialists to manage reputational fallout following a data breach.
For technology products and service providers, the XL EclipsePro solution incorporates technology E&O to address their professional liabilities.
This cover also meets the needs of electronic communication service providers facing increased legal exposures resulting from the European Commission’s recently amended ePrivacy Directive, according to XL.
Dawn Simmons, Senior Underwriter Professional Lines for XL Insurance, said: “The combination of more sophisticated criminals and stricter data breach laws results in companies facing increasing financial and reputational exposures. The average cost of a data breach in Europe in 2010 was approximately £1.9 million and we expect that number to rise in the future.”
