Island insurer Freisenbruch-Meyer has launched a new cyberliability protection plan — a first for the Bermuda sector.

The Front Street firm said the decision reflected increasing concern about cybercrime in the business world.

William Madeiros, executive vice-president and chief development officer at the company, said: “We are pleased to be the first to market with a product to satisfy our clients’ unique insurance protection needs.

“A great deal of time and effort has gone into crafting a product that will produce the best combination of protection and pricing.”

The insurance is offered in a partnership deal with AJ Gallagher, London and Dual Corporate Risks.

Mr Maderios said: “What we have done, because of our great partners in the UK, through our associated brokers in London, AJ Gallagher, we have found someone who is selling this insurance in a much larger way than Bermuda. We were fortunate to be able to get into an existing programme elsewhere.”

He added: “Increasingly, our clients are asking for this.”

Mr Madeiros said that his firm had been so impressed by the coverage available, it had signed up itself.

He added: “If you think about it, we are a client too and we were one of the first to buy this product. It’s something we’re very proud of and we’re first to market.

“It’s my opinion that Bermuda customers are very well served by the insurance marketplace. The only way we stay good is by competing and competing well.

“I would imagine all our existing clients would want to come in on this.”

Thomas Edwards, Freisenbruch-Meyer’s assistant vice-president of broking, who headed the cyber insurance team, said: “The customisation of security and privacy insurance policies enables Freisenbruch-Meyer to service a variety of industries such as financial services, health, hospitality, retail and other business segments.

“We welcome the opportunity to discuss this emerging exposure with not only our valued clients, but also the wider business community.”

He added: “Cyber incidents are occurring on a daily basis and companies were felt to be exposed through the digital world.

“We put together a stand-alone product to cover any breach of a company’s security or systems.”

The new insurance product includes coverage against hackers breaking into a network to steal personal identifiable information or credit-card information.

Mr Edwards said: “It’s for anyone who holds a large amount of personal identifiable information.”

He added: “This product is especially good in the area of business interruption, covering first party costs in the aftermath of a breach.”

The coverage also includes costs to find and fix any loopholes in systems that have been exploited by crooks.

Mr Thomas said: “Businesses are losing valuable income trying to protect themselves from breaches. This is the backstop — insurance should be seen as a backstop for protecting yourself.

“We would suggest any business who wants to look at this product that they should ensure their systems are secure and up to date as they possibly could be, with cyber insurance as a last resort.”

Bermuda supermarket chain Arnold’s was hacked in January last year, which led to some bank cards used in-store being exposed to overseas fraudsters.