JOHNSTON, R.I., USA—FM Global, one of the world’s largest commercial property insurers, today announced an industry first: Cyber Optimal Recovery, an endorsement to its all-risk FM Global Advantage® policy that helps maximize a client’s recovery from a cyber-related loss to enhance their business resilience.
Designed for clients that have—or intend to purchase—a stand-alone cyber policy, the new Cyber Optimal Recovery endorsement grants FM Global clients the option to choose whether the FM Global Advantage policy is primary, contributing or is in excess to a cyber policy, in order to maximize recovery under both policies.
“Cyber risk is becoming increasingly sophisticated and complex and leading many organizations to purchase separate cyber policies that often cover both third-party liability and first-party property. This creates a scenario where it may be unclear how these policies would interact in the event of a cyber loss,” said Bret Ahnell, FM Global executive vice president. “This endorsement was developed in direct response to feedback from our mutual policyholders to ensure they receive the best cyber claims recovery possible with contract certainty.”
Since 1999, FM Global has been at the leading edge of providing its clients with comprehensive first-party property cyber coverage for malware, denial-of-service attacks and cloud interruption, as well as resulting property damage and business interruption. Earlier this year, the company expanded its coverage to include interruption of data services, such as those resulting from cloud computing. Additionally, last month, the company announced the formation of integrated underwriting and engineering units dedicated to enhancing the company’s expertise in property insurance cyber solutions.
About FM Global
Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every three Fortune 1000 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.