CFC, an insurance provider specializing in carbon-related risks, has launched a new extension to its flagship cyber-responsive insurance for small and medium-sized enterprises (SMEs).
This extension was developed to provide necessary protection to small and medium-sized businesses by addressing financial losses caused by incidental business interruptions (BI), such as a large customer canceling an order for a period of time due to a cyberattack.
Scott Bailey, CFC’s global head of cyber underwriting, said: “The cyber attack on Jaguar Land Rover demonstrates significant vulnerabilities in its supply chain as the company relies on a major customer whose business has been effectively shut down by cybercriminals.
“While unable to run its own operations during the attack and recovery period, Jaguar Land Rover was forced to cancel orders from hundreds of suppliers, thereby destroying the short-term fortunes of many small business suppliers.”
Bailey added: “Over the past 25 years, cyber insurers have a clear track record of providing coverage to policyholders whose businesses have been directly affected by cyberattacks or have been impacted by vendor attacks.
“Until now, however, we have not fully addressed the risks small businesses face from cyberattacks on their customers that impact their supply chains. Our groundbreaking Customer Business Interruption extension fills this protection gap.”
Endorsed by the CFC’s flagship cyber policy for SMEs, Cyber ​​Proactive Response, Customer Business Interruption is rolled out globally, providing brokers with a much-needed solution to any small business that generates significant revenue from a single customer.
While CFC’s customer business interruption coverage is particularly suited to industries with significant supply chain vulnerabilities, such as manufacturing and wholesale/distribution, it is available to businesses in all industry sectors and in all geographic regions.
“We are extremely proud to step up and provide a solution to this real-world need. At CFC, we strongly believe that cyber insurers must respond quickly to evolving risks. Given the large number of SMEs that remain without cyber protection and the growing threat posed by cybercriminals, our insurance sector has a vital role to play in helping to build economic resilience and protect livelihoods,” Bailey further commented.
CFC also continues its long-standing relationship with the British Insurance Brokers Association (BIBA), having been the organization’s dedicated cyber insurance program provider since 2004.
Through this partnership, CFC provides customer business interruption recognition to BIBA members across the UK.
