February 15, 2017 by Canadian Underwriter
Burlington, Ont.-based Pen Underwriting Canada Limited announced on Wednesday that it has created a comprehensive cyber solution to respond to the “increasing threat that cybercrime poses for corporations.”
Backed by A+ rated capacity, the specialist cyber product is designed for small- to medium-sized corporations and safeguards customers against the main aspects of a cyber breach, including the theft of data or information, business interruption and liability costs resulting from the breach, Pen Underwriting Canada said in a press release.
Customers have access to a 24-hour data breach hotline so they can report incidents in a timely fashion, and the product also offers cover “in instances where there is no legal obligation to notify, if the insured feels that doing so will mitigate potential reputational damage,” Pen Underwriting Canada reported. The product is also available through the company’s custom quote and bind platform so getting cover is “simple, straightforward and quick. The platform can quote and issue a policy within five minutes, while offering a broad range of coverage to diverse exposures with generous limits.”
Pen Underwriting Canada said that the multimedia liability cover is unique in the market as it covers a range of different types of media, as well as the formats where the information is kept, rather than just content posted to the insured’s website. Notable benefits of the wording include: privacy liability (including employee privacy); privacy regulatory claims coverage; security breach response coverage; security liability; multimedia liability; cyber extortion; business income and digital asset restoration; and PCI DSS (payment card data security standard) assessment.
According to the Verizon 2016 Data Breach Investigations Report, 89% of breaches in 2016 had a financial or espionage motive, Pen Underwriting Canada said in the release. And in Canada, the average cost per lost or stolen record in 2016 rose by 10.6% to $278, the release said, referring to a June 2016 Ponemon Institute data breach study.
“Pen’s cyber insurance product is a comprehensive solution that address this emerging exposure and safeguards clients in the event of a cyberattack,” said Tom Butler, president of Pen Underwriting Canada, in the release.
Glenn Woodard, the company’s underwriting director, added that “cyber is a growing threat for corporations across the world and with cybercrime on the rise, organizations are increasingly thinking about cybersecurity and ways to mitigate this threat. Insurance has a key role to play in mitigating this risk. We understand that each industry is exposed in different ways and our cyber solution has been created around our insight and understanding of the threats that a cyberattack poses to our customers. The unique aspect of our multimedia liability coverage, coupled with the ability to purchase this product through our quote and bind platform, means we are making it easy for customers to get the necessary protection they need quickly and efficiently.”
Pen Underwriting Canada is a specialist underwriting business and subsidiary of Arthur J. Gallagher Canada Limited. It was launched to provide solutions for hard-to-place accounts for Canadian clients and offers a growing range of niche products.