AXA XL has introduced a new cyber insurance endorsement in the US, specifically designed to address the cyber risks faced by contractors.
This move comes as a response to the rapidly evolving landscape of cyber threats affecting the construction industry.
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The new endorsement offers a range of coverages to enhance protection for construction companies.
One of the key features includes missed bid reimbursement, which compensates for income loss if a company cannot submit a bid due to a cybersecurity breach or system failure.
Furthermore, the endorsement provides contingent bodily and property damage coverage for third-party injury or property damage claims resulting from a cybersecurity breach.
It also expands the definition of a network to encompass building information modelling (BIM) and other construction-related software, ensuring coverage for claims or first-party costs arising from breaches or system failures involving such software.
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By GlobalDataAXA XL Americas cyber chief underwriting officer Michelle Chia said: “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.”
Additionally, the endorsement includes downstream contractual penalty coverage to mitigate losses from contractual penalties due to construction or production delays caused by cybersecurity incidents.
Drone coverage is also a part of the package, addressing privacy violations that may arise from the use of drones.
AXA XL offers insurance and risk management products and services for mid-sized companies through to large multinationals, as well as reinsurance solutions to insurance companies worldwide.
Recently, the company added a new endorsement to its cyber insurance policy to help businesses tackle emerging generative AI risks.
