Subject to cyber theft? There’s a policy for that:

KEY INSURANCE Company Limited is now offering coverage for cyber liability tailored for companies of all sizes, in partnership with an unnamed reinsurer, for which the premium starts at US$1,500 per year.

The product is not only meant to insure companies against cyber criminals, but also as a backstop for those that find themselves facing pecuniary charges for breaching data or privacy laws, either in Jamaica or foreign jurisdictions.

“Fines will be imposed,” declared Key Insurance Managing Director Sandra Masterton, as she announced the new cyber insurance product at the company’s annual general meeting this week.

A new European law, the GDPR, which took effect on May 25, puts limitations on how companies collect, use, and share people’s data, and threatens fines of as much as four per cent of a firm’s global annual revenue for non-compliance.

Jamaica’s Data Protection Bill, introduced in Parliament in October 2017, is still being reviewed by legislators, but is expected to result in fundamental changes in how data is handled, as well as penalties for noncompliance.

Masterton said that while the cyber liability insurance was for all companies, the small firms tend to be more at risk of having their systems breached by hackers and “are more likely to pay the ransoms to get their business back up”.

The coverage for cyberattacks protects against a company’s vulnerability to fraud and identity theft through use of their information, with Masterton noting that hackers may use the systems of small firms as a gateway into larger companies.

Key last year earned premiums of $1.44 billion, dominated by motor coverage.

The company hopes the cyber liability product will help expand its non-motor business line, which as of May accounted for over 37 per cent of gross premiums, said Masterton.

Cyber would further diversify the non-motor portfolio, which already includes products for personal accident and travel coverage, as well as property.

Masterton told the Financial Gleaner that the company incurred no costs relating to the cyber product, which she said was not of the company’s design and was essentially being distributed on behalf of the reinsurer.

“We have reinsurance that provides these services. It’s almost like a concierge service,” she said.

Coverage ranges from US$250,000 to

‘Small firms tend to be more at risk from hackers and are more likely to pay the ransoms to get their business back up’