Liberty Specialty Markets (LSM), part of Liberty Mutual Group, has partnered with Baobab Insurance to introduce an e-crime insurance product.
This collaboration provides small and medium-sized enterprises (SMEs) with a tailored solution to protect against digital fraud risks including CEO fraud and deepfakes.
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Backed by LSM’s capacity, the offering is available from this month. It will be integrated into the cyber application process in a “timely manner”, stated the company.
Baobab Insurance will handle broker sales, product development and underwriting.
The stand-alone product has an insured sum of up to €5m ($5.46m) and is said to be a first for SMEs.
Baobab Insurance’s approach to risk assessment for the e-crime insurance product involves five key questions – the number of employees, annual turnover, operations in sanctioned countries, the implementation of a dual control principle for invoicing and current fraud prevention measures.
LSM Germany general manager Michael Harth said: “As a specialist insurer, it was important for us to find a partner with in-depth expertise in the area of cyber risks. With Baobab, we have exactly this specialist at our side. Together, we are launching a product on the market that finally provides SMEs with efficient protection against e-crime – without an excessive application process.”
Baobab Insurance co-founder and managing director Vincenz Klemm stated: “Issues such as CEO fraud and deepfakes are a real threat to SMEs. Together with our existing cyber and IT liability insurance policies, we are now offering these companies a comprehensive range of services. In line with our strategy, we are thus positioning ourselves as a digital specialist insurer for technical risks.”
Earlier this month, LSM made headlines as an early adopter of Neuron, a digital trading platform developed by WTW.
