Specialist renewable energy insurer GCube has a launched cyber risk policy aimed at protecting renewable energy sources from attacks. The policy follows a rise in cyber hostility towards global power generation and transmission infrastructure.
“In the renewables market, the benefits of ‘big data’ and interconnectivity in driving operational efficiency are well-established – but there is an underlying risk that this increasing digitisation makes the industry a more obvious target for cyber crime,” said Fraser McLachlan, Chief Executive Officer of GCube Insurance.
The new product is a sector-first and covers owners and operators in any circumstance where the ability to generate power – and the associated revenue – is impacted by a cyberattack on proprietary or third-party IT or OT (Operational Technology) systems.
“Thus far, the wind and solar markets have avoided a major incident, but research efforts by cyber security experts show just how easy it could be for hackers to bypass IT security mechanisms and gain control of, or otherwise influence, the operation of a wind or solar facility,” added McLachlan.
GCube says this new product translates to coverage for loss of revenue – and incidental expenses – incurred in a range of circumstances, including non-damage events, digital asset destruction, including loss of use or theft of import SCADA (Supervisory Control and Data Acquisition) data, reputational harm and cyber extortion.
McLachlan continued, “While energy firms commonly take out policies to mitigate the commercial risk of a customer or employee data breach – and the physical integrity of assets is covered by conventional insurance – what has been lacking in the market to date is a means of compensation for when a cyberattack prevents a renewable energy project from operating as it should.”
Furthermore, cover can also be extended to include a cyberattack on assets not actually owned by the insured, such as damage to a third-party substation or transmission infrastructure that prevents the export of power.
“We’ve worked closely with our insured clients in the United States and around the world to develop a Cyber Risk offering that meets the specific needs of renewable energy asset owners and operators,” said McLachlan.
