EPIC Insurance Brokers & Consultants today announced exclusive access to a unique cyber product designed to help protect companies involved in merger, acquisition or asset purchase transactions. Specifically, this product helps protect against “dwell time,” the critical time that transpires between a cybersecurity breach and its discovery. During dwell time, the hacker lies undetected behind a firewall.
“Cyber breaches may go undetected for months and even years. Protecting this risk in a sale, even in an assets-only deal, can spare purchasers from experiencing significant financial loss,” said Kelly Geary, EPIC Cyber Leader.
The Berkley Purchaser Protect℠ product, developed by Berkley Cyber Risk Solutions, is specifically designed for organizations planning to make multiple, strategic purchase transactions to support growth objectives. Under this coverage, policyholders are insured against financial loss from certain events that occur prior to a transaction closing date and are only discovered post-close, and they are able to select the desired discovery period, up to six years. Policyholders can also gain access to third party security rating services at a preferred rate to monitor target companies.
Of the product, Steve Krusko, Berkley Chief Underwriting Officer added, “We are honored to be partnering with EPIC to provide clients who are engaging in M&A transactions with risk management tools to assess target companies’ risk during the due diligence process and with effective risk transfer following closing.”
Companies may find the policy valuable even in cases where acquired companies have existing Cyber policies and tail coverage, because that coverage typically only applies to liability exposures and not to first party breach response expenses.
Geary added, “At a time when many stand-alone policies are narrowing coverage, Berkley Purchaser Protect fills a critical gap.”