This Wednesday, Marsh L.L.C. announced its launch of a global excess cyber risk facility which will provide more reliable insurance coverage for organizations around the world. This facility, referred to as Cyber ECHO, is underwritten by Lloyd’s of London syndicates and plans to bring greater stability to the excess market by providing up to $50 million in “follow form” coverage for clients in “any industry sector and risk profile around the world,” Marsh said. Additionally, the facility is designed to coincide with the terms and conditions outlined in the primary cyber policy. Marsh explains that “Such follow form language helps to mitigate coverage ambiguities that can sometimes lead to costly disputes and/or delays in claims payments.” Leslie Kurshan, Head of Product Development for the Financial and Professional (FINPRO) Practice at Marsh UK, added “Inconsistent wordings and varying terms and conditions between primary and excess insurance policies can contribute to significant delays in claims being paid and may even result in the failure to recover costs from insurers. Cyber ECHO helps to mitigate these issues, and is designed to aid in swift recovery from a loss.”
Also included in Cyber ECHO is a pre-priced option which allows those insured to reinstate their policy limits if a cyber event occurs during the policy period, which otherwise, could deplete their limits. Bob Parisi, Marsh’s U.S. Cyber Product Leader, stated: “While overall capacity in the cyber market remains abundant, the excess market is highly volatile … With Cyber ECHO, we are providing clients of all industry sectors with an efficient and more predictable excess coverage solution.” With cyberattacks and data breaches becoming a top concern of organizations of all types, now having more disastrous effects than ever before, it is likely that other top insurance and brokerage firms will follow.