AXA XL, the property & casualty (P&C) and specialty risk division of global insurer AXA, has created a new tailored cyber insurance endorsement for construction companies in the United States, designed to enhance their protection against cyber threats.
Michelle Chia, Chief Underwriting Officer, Cyber in the Americas, stated: “Every industry has its own unique set of challenges when it comes to cybersecurity. The construction industry is no exception.
“In fact, its growing reliance on various digital tools and data, such as 3D models, project management platforms, AI, 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.”
AXA XL’s new construction cyber endorsement includes coverage for a number of issues, including missed bid reimbursement for income loss due to not being able to submit a bid because of a cyber security breach or system failure.
It also provides coverage for Contingent Bodily and Property Damage, ensuring protection against third-party injuries or property damages resulting from a cyber security breach.
Its expanded definition of network is to include BIM (Building Information Modeling) and other construction-related software. This allows the product to provide coverage for claims or first party costs resulting from a breach or system failure on such software operated by the insured firm.
Moreover, the new cyber endorsement also provides downstream contractual penalty coverage as well as drone coverage to address privacy violations.
Greg Chambers, Cyber Underwriting Manager, commented: “Recent cyber-attacks 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.”
