Zurich North America has announced the launch of a new cyber insurance offering specifically tailored for middle market businesses.
The Zurich Cyber Insurance Policy - Concierge Suite goes beyond traditional coverage by incorporating loss-prevention and resilience services such as a breach coach and a 24/7 cybersecurity hotline, the company said.
The product can assist businesses in resolving both first-party cyber events and third-party claims, serving as a valuable complement to other property or casualty coverages already held with Zurich.
“Many middle market companies have been caught in a cyber resource gap,” said Michelle Chia, head of professional liability and cyber at Zurich North America. “They do not have the extensive cybersecurity teams and tools that larger corporations do, and yet face equally serious cyber risks. We designed Zurich’s middle market cyber offering to be a turnkey solution that provides cost-effective protection and high-quality services. The goal is to help simplify and enhance cyber resilience for the middle market segment, which is a growing and vital driver of the economy.”
Studies have identified middle market businesses as particularly vulnerable to cyber threats, Zurich said. A survey conducted in the first quarter of 2023 revealed that 27% of midsize businesses with fewer than 2,000 employees had no cyber insurance coverage, while 24% reported experiencing a cyberattack or were uncertain if they had been targeted within the past year. The survey also found that 61% of these companies lacked dedicated cybersecurity experts, and 47% did not have an incident response plan in place.
“Many middle market companies tell us they want to improve their cyber posture but lack the staff, skill sets or access to cost-effective tools,” said Alex Wells, head of middle market at Zurich North America. “In the unfortunate event of an attack, customers don’t have to scramble to find reliable incident response services or worry about being gouged on price. Incident response and recovery and other essential services are built into this holistic solution.”
Zurich's middle market cyber offering has met insurance regulations for "admitted" status in 46 states, simplifying the process for regional brokers to offer the solution to their clients.
Policyholders are entitled to a complimentary onboarding session with Zurich Resilience Solutions' cyber risk engineers. These experts can provide recommendations on appropriate measures to prevent and recover from cyber losses, Zurich said. Cyber resilience is of paramount importance, as studies have shown that 60% of small companies go out of business within one year of falling victim to a cyberattack.
The offering includes pre- and post-event cyber services from trusted vendors with whom Zurich has established long-term relationships. Some of the resources incorporated in the suite encompass triage services during network security threats or attacks, incident-response teams to identify attackers and minimize the impact, support for restoring critical operations, and assistance with data breach notification obligations and crafting appropriate responses.
Zurich's dedicated Cyber Claims team consists of experienced attorneys well-versed in cyber matters, equipped to handle claims and aid in the recovery process.
Zurich will continue to provide cyber insurance products and services for larger companies that meet the qualifications.
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