CFC, an insurance provider with a focus on carbon-related risks, has launched a new extension to its flagship Cyber Proactive Response cover for small and medium enterprises (SMEs).
This extension was developed to provide essential protection for SMEs by addressing financial losses caused by contingent business interruption (BI), such as when a major customer cancels orders for a period of time as a result of a cyber attack.
CFC’s Head of Global Cyber Underwriting, Scott Bailey, said: “The cyber attack suffered by Jaguar Land Rover demonstrated acute vulnerability in the supply chain because of dependence on one major customer whose business has effectively been shut down by cyber criminals.
“Whilst unable to operate its own business as normal during the attack and recovery period, JLR was forced to cancel orders with its hundreds of suppliers, decimating the short-term fortunes of many of its small business providers.”
Bailey added: “Over the past 25 years, cyber insurers have a demonstrable track record of covering policyholders whose businesses have been directly hit by a cyber attack or caught up in the fallout of an attack impacting their suppliers.
“However, we haven’t fully addressed the exposure faced by small businesses of a customer falling victim to a cyber attack and impacting the supply chain like this – until now. Our groundbreaking customer business interruption extension fills that protection gap.”
Available globally by endorsement on CFC’s flagship cyber policy for SMEs, Cyber Proactive Response, customer business interruption provides a much needed solution for brokers to offer to any small business that receives a material proportion of revenue from a single customer.
Although especially available for sectors with clear supply chain vulnerabilities, such as manufacturing and wholesale/distribution, CFC’s customer business interruption coverage is available to businesses in all industry sectors and across all geographic areas.
“We’re incredibly proud to have stepped up and delivered a solution to this real world need. At CFC, we passionately believe that cyber insurers must respond rapidly to evolving risks. Given the significant number of SMEs still without cyber protection and the ever increasing threat posed by cyber criminals, our sector of the insurance industry has a vital role to play in helping build economic resilience and protect livelihoods,” Bailey further commented.
CFC is also continuing its long-standing partnership with The British Insurance Brokers’ Association (BIBA), having been the organisation’s dedicated cyber insurance scheme provider since 2004.
Through this collaboration, CFC delivers the customer business interruption endorsement to BIBA members across the UK.
