Berkley Cyber Risk Solutions, a business unit of W. R. Berkley Corporation, has announced a new endorsement aimed at reimbursing specific personal and logistical costs incurred by employees responding to cyber breach events.
Incident Responder Enhancement Endorsement
The Incident Responder Enhancement Endorsement provides reimbursement for expenses such as:
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Canceled vacations
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Child or elder care costs
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Corporate safety-related expenditures
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Crisis counseling services
According to the company, these benefits are offered outside the limits of liability and carry no retention.
Rich Sheridan, chief claims officer at Berkley Cyber Risk Solutions, said the endorsement was created after the claims team identified common stressors faced by employees managing breach incidents. Sheridan noted that financial burdens during such events can affect an employee’s ability to focus on resolving the crisis.
Broader Cyber Initiatives
The endorsement builds on Berkley’s broader involvement in the cyber insurance space. Earlier in the year, Berkley Re Solutions partnered with insurtech managing general agent Coterie Insurance to offer cyber coverage through Coterie’s platform. This offering is designed for small businesses and includes:
- Incident response resources
- Forensic services
- Preventative cybersecurity guidance
Berkley Re has also developed Turnkey Solutions, a platform to support program administrators and managing general agents (MGAs). This platform provides reinsured solutions across multiple lines of coverage, including cyber, and is geared toward emerging distribution models such as insurtechs and niche MGAs.
Addressing Emerging Cyber Risks
The introduction of new cyber coverages comes amid growing concern over risks linked to artificial intelligence. Threats now include:
- AI-generated malware
- Automated phishing
- Deepfake technology
Industry experts have also been exploring new financial mechanisms to manage large-scale cyber risk. The Geneva Association has highlighted cyber catastrophe bonds as one potential solution. These instruments, still in early stages of adoption, could help transfer systemic cyber risk to capital markets and provide additional capacity beyond what traditional insurance carriers may be able to offer.