CFC Adds Features to Its SME Product

 The latest from CFC as they expand their cyber product aimed at SMEs;

CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber, has today launched a new extension to its flagship Cyber Proactive Response cover for SMEs.

Customer business interruption responds to contingent business interruption (BI) events, delivering much needed protection for SMEs facing financial loss as a result of a major customer cancelling orders for a period of time as a result of a cyber attack.

“The cyber attack suffered by Jaguar Land Rover demonstrated acute vulnerability in the supply chain because of dependence on one major customer whose business has effectively been shut down by cyber criminals,” said CFC’s Head of Global Cyber Underwriting, Scott Bailey. “Whilst unable to operate its own business as normal during the attack and recovery period, JLR was forced to cancel orders with its hundreds of suppliers, decimating the short-term fortunes of many of its small business providers.”

“Over the past 25 years, cyber insurers have a demonstrable track record of covering policyholders whose businesses have been directly hit by a cyber attack or caught up in the fallout of an attack impacting their suppliers. However, we haven’t fully addressed the exposure faced by small businesses of a customer falling victim to a cyber attack and impacting the supply chain like this – until now. Our groundbreaking customer business interruption extension fills that protection gap.”

Available globally by endorsement on CFC’s flagship cyber policy for SMEs, Cyber Proactive Response, customer business interruption provides a much need solution for brokers to offer to any small business that receives a material proportion of revenue from a single customer.

While ideal for the manufacturing and wholesale/distribution industry sectors with clear supply chain risks, CFC’s customer business interruption cover is available to all industry sectors and across all geographic areas.

“The immediate and unexpected cancellation of orders as a result of a customer suffering a cyber attack places immense pressure on an SME’s cash flow, that can sadly prove terminal for many,” added Bailey. “We’re incredibly proud to have stepped up and delivered a solution to this real world need. At CFC, we passionately believe that cyber insurers must respond rapidly to evolving risks. Given the significant number of SMEs still without cyber protection and the ever increasing threat posed by cyber criminals, our sector of the insurance industry has a vital role to play in helping build economic resilience and protect livelihoods.”

CFC has served as BIBA’s dedicated cyber insurance scheme provider since 2004 and is proud to partner with BIBA in delivering the customer business interruption endorsement to its members across the UK.

“We are seriously concerned that small and medium sized firms face a real risk of a drop off in demand if companies at the top of their supply chain suffer a cyber-attack,” said Graeme Trudgil, BIBA CEO. “We warmly welcome this innovative new insurance approach by long-term BIBA scheme provider, CFC, to provide a customer business interruption extension to a cyber policy, which is potentially a game-changer for suppliers who rely on key customers. This is a new and helpful insurance solution for insurance brokers to provide to their clients.”