Bermuda-based Kiln and insurance broker Lockton have joined forces to offer insurance cover to companies concerned about breaches of data and reputational loss, which can cost companies millions of dollars.

The companies said as a result of serious data breaches, which often occur when big organisations are targeted by sophisticated technology-literate gangs, the corporate world is facing up to an emerging threat to its income.

Reputational loss is also a major peril in today's technology and new media age when it is far easier to lose a reputation (and hence profitability) than it is to build one.

Kiln and Lockton are offering a "Business Resiliency Insurance" to protect businesses against these areas or rsk.

The product offers cover against direct losses of business income and related expenses as a result of major data breaches and direct losses from a disruption to an outsourcing or off-shoring agreement.

The cover against data breaches covers the difference between anticipated income and actual income after a dat abreach, while the outsourcing protection addresses ono-performance risks associated with outsourced services, said Dan Trueman, special risks underwriter at Kiln, which is a wholly-owned subsidiary of Tokio Marine.

For more information on Business Resiliency, contact Emily Freeman at Lockton Companies International Ltd. in London at 44 20 7933 2224 or Emily.freeman@uk.lockton.com">Emily.freeman@uk.lockton.com