AXA XL introduces new cyber endorsement

AXA XL unveiled a new cyber insurance endorsement providing public companies with dedicated coverage to address the costs associated with updated U.S. Securities and Exchange Commission reporting compliance obligations following a cyber incident.

Under the SEC’s Cybersecurity Risk Management, Strategy, Governance and Incident Disclosure rule, public companies are required to disclose cyber incidents that could have a material impact on their business, including the risks and potential consequences. This includes disclosing breaches, theft of sensitive information, and other cyber-related events. Public companies are required to report a breach in a Form 8-K within four days once they have determined that an incident is material.

AXA XL’s new endorsement provides dedicated coverage for the costs of investigating the breach including legal fees for compliance and disclosure requirements such as the filing of an 8-K.

“Just four days. That’s how long public companies have to meet proper disclosures requirements once they determine they suffered a material cyber breach. That’s not a lot of time. Having this dedicated coverage to quickly address SEC reporting requirements provides companies with added financial protection and support during a challenging time.” – Michelle Chia, Chief Underwriting Officer for Cyber in the Americas, AXA XL.

“This new endorsement allows our clients to quickly access coverage that is specifically earmarked to address these compliance requirements and giving them the flexibility to enlist their preferred securities counsel. Having evaluated average investigation and disclosure, we’re pleased to offer added protection at a sublimit appropriate with the exposure.” – Rachel Rossini, Cyber Product Manager, AXA XL.