JLT's new cyber policy targets coverage ‘gaps’ in airline industry
JLT Specialty, a subsidiary of Jardine Lloyd Thompson Group, has launched a new cyber insurance policy for the airline industry covering business interruption and data breach risks.
The new protection insurance DART (data and reliance on technology) is designed specifically to fill the commonly identified cyber gaps in the existing airline insurance portfolios, the broker said. It will provide pre-agreed payout in case of business interruption without lengthy adjustment process, JLT said.
The cover will be provided on a discovery basis and will include incident response, data restoration, cyber extortion and cyber & data breach liability, balance sheet protection, as well as business interruption loss. Specific policy extensions will also be available for issues related to outsourced service provider dependencies, data privacy or to cover the cost of customer goodwill initiatives as part of the incident response.
JLT’s DART will cover business interruption on applicable flights cancelled or delayed for more than three hours due to a cyber incident. This cover will be on a pre-agreed value basis which takes into account lost revenue, duty of care, and statutory passenger compensation. Extended outage of the website or on-board point of sale systems resulting in revenue loss are also covered and would be adjusted in the same way as a standard cyber policy.
JLT said that it is working with a number of highly rated and experienced London market insurers to support this new facility with excess of £100 million in capacity.
Nigel Weyman, head of aerospace at JLT Specialty, said: "The airline industry continues to face a growing threat from cyber attacks, which if not handled effectively can have a devastating effect on a business, causing serious damage to reputation and consumer trust.
"With attacks becoming increasingly sophisticated, the need for cybersecurity solutions is becoming much stronger. The insurance industry has a long history of providing innovative solutions for emerging risks, and I’m delighted that using our in-depth experience of the aviation industry we’ve been able to develop a product that will help airlines recover more quickly should they become the victim of a cyber attack."
Sarah Stephens, head of cyber at JLT Specialty, added: "The launch of DART protection insurance for airlines fills a distinct gap in the current market, and ensures airlines are protected in the ever evolving cyber risk landscape. This sort of innovation is testament to JLT’s dedication to evolve to best meet the complex and changing needs of our clients across the airline industry."
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