Delegated authority specialist and Lloyd’s Broker Endeavour Insurance Services has launched a new cyber security coverage program, Ensconce, designed to protect manufacturers from the risk of physical damage caused by cyber attacks.
The Ensconce coverage responds to the increasing risk from manufacturing automation that has come from the internet of things (IOT) that exposes crucial hardware to cyber threats.
In addition to providing coverage in standard cyber areas such as third party liability, first party liability, data breach clean up, and social engineering loss, Ensconce offers coverage in instances of remote access to a client’s production line, any property damage to a facility, system failure and business interruption due to malicious cyber attack.
Ensconce also covers reputational harm, fines and penalties resulting from a cyber attack, as well as IP theft and extortion. It is primarily targeted at mid-market manufacturing, real estate, hospital, hotel, infrastructure and municipal clients that have cyber exclusions on their property insurance.
Developed for companies in the USA and Canada, but also available worldwide, the minimum premium for risks placed through Ensconce is $15,000, and all risks are placed 100 percent at Lloyd’s in the London Market. The first Ensconce risks have already been written, with USA clients including a packaging factory; one of the largest bakeries in the country; and a door manufacturing giant.
“Cyber security breaches are already costing manufacturing companies millions of dollars, causing loss of productivity and IP, resulting in ransomware payments and fines as well as potential physical damage to a facility,” said Endeavour Insurance Services Divisional Director David Price. “Manufacturers and infrastructure companies are facing highly targeted attacks on an almost daily basis. From the Stuxnet computer worm attack which damaged critical Uranium enrichment facilities, to the NotPetya attack in the USA which disrupted production of a large pharmaceutical’s medicines and vaccines, property damage and business interruption are all well established components of the arsenal of malicious hackers.”
Other initiatives include Endeavour’s cyberEIS online cyber risk placement and binding (which is separate from Ensconce), its construction contractor deductible buyback and online portal, as well as free access to Endeavour clients to the Advantage online claims handling platform.
Endeavour Insurance Services specializes in the placement of business produced by North American and European agents handled under delegated authorities.
Endeavour has four divisions supporting business from the USA; Canada, Europe and the rest of the world; facultative reinsurance; and cyber.
The classes of business covered under the above territories include:
- USA: Property, Casualty, Professional Risks, Specialty. Open Market, Binding Authorities and Reinsurance
- Canada: Property, Casualty, Professional Risks and Personal Accident. Open Market, Binding Authorities and Reinsurance
- Cyber worldwide – Online portal, cyberEIS