GCube, a provider of renewable energy insurance services, has launched a new cyber risk policy.
The product is designed to cover the specific cyber exposures of renewable energy asset owners. Unlike more conventional cyber insurance products in the market, which focus on data breaches relating to personal information, the company says, the solution covers owners and operators in any circumstance where the ability to generate power – and the associated revenue – is impacted by a cyberattack on proprietary or third-party IT or OT (operational technology) systems.
In practice, this means it provides cover for loss of revenue – and incidental expenses – incurred in a range of circumstances, including non-damage events; digital asset destruction, including loss of use or theft of import SCADA data; reputational harm; and cyber extortion.
Cover can also be extended to include a cyberattack on assets not actually owned by the insured, such as damage to a third-party substation or transmission infrastructure that prevents the export of power.
“In the renewables market, the benefits of ‘big data’ and interconnectivity in driving operational efficiency are well-established – but there is an underlying risk that this increasing digitalization makes the industry a more obvious target for cyber crime,” says Fraser McLachlan, CEO of GCube Insurance. “Thus far, the wind and solar markets have avoided a major incident, but research efforts by cyber security experts show just how easy it could be for hackers to bypass IT security mechanisms and gain control of, or otherwise influence, the operation of a wind or solar facility.”
McLachlan adds, “We’ve worked closely with our insured clients in the United States and around the world to develop a cyber risk offering that meets the specific needs of renewable energy asset owners and operators.”