AXA XL Introduces Endorsement to Help Public Companies Address SEC Cyber Reporting Costs

PRESS RELEASE

NEW YORK, May 6, 2024 /PRNewswire/ -- AXA XL unveiled a new cyber insurance endorsement providing public companies with dedicated coverage to address the costs associated with updated U.S. Securities and Exchange Commission (SEC) reporting compliance obligations following a cyber incident.

According to Michelle Chia, Chief Underwriting Officer for Cyber in the Americas, "Just four days.  That's how long public companies have to meet proper disclosures requirements once they determine they suffered a material cyber breach. That's not a lot of time.  Having this dedicated coverage to quickly address SEC reporting requirements provides companies with added financial protection and support during a challenging time."

Under the SEC's Cybersecurity Risk Management, Strategy, Governance and Incident Disclosure rule, public companies are required to disclose cyber incidents that could have a material impact on their business, including the risks and potential consequences. This includes disclosing breaches, theft of sensitive information, and other cyber-related events. Public companies are required to report a breach in a Form 8-K within four days once they have determined that an incident is material.

AXA XL's new endorsement provides dedicated coverage for the costs of investigating the breach including legal fees for compliance and disclosure requirements such as the filing of an 8-K. 

According to Rachel Rossini, Cyber Product Manager, "This new endorsement allows our clients to quickly access coverage that is specifically earmarked to address these compliance requirements and giving them the flexibility to enlist their preferred securities counsel. Having evaluated average investigation and disclosure, we're pleased to offer added protection at a sublimit appropriate with the exposure."

AXA XL's cyber insurance team is dedicated to helping clients understand and minimize their cyber risks through comprehensive insurance coverage and risk management services. With a focus on proactive risk assessment and responsive claims handling, AXA XL's cyber insurance team aims to support clients in navigating the complexities of the evolving cyber risk landscape. Their collaborative approach and commitment to innovation make them a trusted partner for businesses seeking robust cyber insurance protection.