CFC Underwriting launches new cyber liability policy to cover the cloud

Lloyd’s managing general agent CFC Underwriting has launched a new cyber liability wording to cover the risks of storing data “in the cloud.”
A technology and cyber liability specialist, CFC says it has identified a gap in cover for firms using cloud computing services. It has launched a new cyber liability policy that now includes the risk of a data breach at a third party cloud provider.
“Cloud computing services are increasingly popular and undoubtedly a huge step forward, but they do present businesses with new risk exposures,” CFC director Graeme Newman said in a press release. “When a cloud service is adopted, data is effectively ‘given away’ without even a contractual agreement to protect it. And because existing cyber insurance policies are focused on the policyholders’ own systems, not those of third parties, they couldn’t be relied on to respond in the event of a breach.
“Sadly this does happen. Breaches at Dropbox and Amazon, are recent high profile examples.”
CFC has launched a new, updated cyber liability form that will respond in the event of a privacy breach or data loss from a cloud service as well as policyholders’ own systems.