CFC expands AI cover and emergency continuity costs to tech-based sectors

By Navneeta Nandan

May 22 - (The Insurer) - Specialist insurer CFC has extended its cyber proactive response (CPR) cover to existing industry-specific policies for the digital health, fintech and technology sectors, in response to the increasing exposure of critical personal data.

CFC said that the CPR coverage, which is available on the above policies with immediate effect, offers affirmative coverage for AI-related events, fee loss coverage from lost or missed bids while competing for contracts, and emergency continuity costs that will enable the businesses to remain operational after a cyber event.

It also provides cyber attack prevention services contractually embedded within the policy wording.

"Each of these sectors is a prime target for cybercriminals due to the vast amounts of critical personal data they manage," said Tim Boyce, deputy chief underwriting officer at CFC.

"Given their exposure, it made sense to immediately enhance the tailored coverage we offer these key sectors by replacing existing cyber wordings with our newly launched CPR coverage."

Boyce added that a cyber attack on these sectors could lead to significant privacy breach, immediate financial loss, reputational damage, and even risk to human life in case of digital health.

In the retail sector, earlier this month UK retailer Marks & Spencer disclosed that the ongoing ransomware attack had also led to the compromise of some personal customer data.

In its results filing on Wednesday, M&S said that it expects to make insurance recoveries of 300 million pounds. As previously reported by The Insurer, M&S has a cyber policy with up to 100 million pounds of cover, brokered by WTW.