McGill and Partners, the independent global specialty insurance and reinsurance broker, has announced the launch of a new cybersecurity insurance solution for the Battery Energy Storage Systems (BESS) market.
The energy sector’s critical role in global infrastructure makes it an increasing target for cyber threats. As reliance on interconnected systems grows, so do the risks, with threat actors often exploiting operational dependencies and vital infrastructure. In response, McGill and Partners has developed a tailored cybersecurity insurance solution to address the unique challenges of the battery energy storage sector.
The cover is flexible, sector-specific, and offers robust protection to safeguard operations from the ever-evolving cyber risk landscape. This provides battery energy storage clients with protection that addresses the unique risks faced by their sector, unlike more generic cybersecurity solutions. The McGill and Partners team has worked closely with its clients to identify potential loss scenarios and develop comprehensive, tailored coverage. Coverage is provided by certain Lloyd’s underwriters.
The solution includes bespoke terms and definitions aligned with the specific technologies used in the battery energy storage sector, as well as physical damage protection for projects and associated assets resulting from cyberattacks. The policy also extends to cover increased regulatory costs as a result of the compliance required to meet evolving cybersecurity and resiliency standards. Clients will benefit from physical damage protection, and coverage is provided for business interruptions resulting from cyber incidents or technical failures, along with access to a dedicated emergency response team to help minimize operational disruptions following a breach.
“As the cyber threat landscape continues to evolve, we are seeing greater demand from clients for industry-specific coverage. Cyber incidents and technical issues at battery energy storage systems are becoming increasingly relevant as these systems become more integrated into global critical infrastructure and smart grids.”
“At McGill and Partners, we work across different specialties, which enables us to develop tailored solutions that reflect the real-world exposures our clients face. We’re proud to develop a solution for a sector that plays a critical part in the energy transition, ensuring our clients are appropriately protected not just against financial losses from a cyber incident but are also equipped to respond decisively in moments of crisis.”
– Tom Dryden, Partner—Cyber, McGill and Partners.
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