AXA XL has introduced a specialized cyber insurance endorsement aimed at bolstering cybersecurity for construction firms across the US, recognizing the sector’s unique and growing exposure to cyber threats. Michelle Chia, cyber chief underwriting officer for the Americas at AXA XL, noted construction companies’ increasing reliance on digitalization as a significant factor.
“Every industry has its own unique set of challenges when it comes to cybersecurity,” she said. “The construction industry is no exception… Its growing reliance on various digital tools and data, such as 3D models, project management platforms, AI (artificial intelligence), Internet of Things devices, and supply chain management software, exposes construction companies to increased cyber risks.
“In collaboration with our construction underwriters, we designed this endorsement to address the very specific cyber concerns of our construction clients.”
The new endorsement features missed bid reimbursement, which compensates for income lost if a cyber incident prevents timely bid submission; contingent bodily and property damage, which covers third-party claims; expanded definition to include Building Information Modeling (BIM) and other construction software; downstream contractual penalty coverage; and drone coverage.
Cyber underwriting manager Greg Chambers added: “Recent cyberattacks in construction have caused delays, business disruption, financial losses, and brand damage. Contractors already operate on very tight profit margins.
“Having the right cyber insurance policy, tailored to their specific exposures, protects profits from the financial consequences of cyber incidents including costs related to investigating a breach, notifying affected parties, legal expenses, project delays, missed business opportunities, and more.”
The new endorsement comes on the heels of AXA XL’s launch of new coverage against generative artificial intelligence (Gen AI) risks.
“Our clients sought help navigating this unchartered territory and, with our brokers’ input and feedback, we’re pleased to develop an innovative, market-leading insurance solution to provide clear coverage for these risks and help them leverage Gen AI without the worry of potential risks and extra costs that could hinder their efforts,” Michael Colao, AXA XL’s global CUO for cyber, said earlier this month.
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