BOXX Insurance, a global cyber insurtech part of Zurich Insurance Group, today announced affirmative coverage for AI and deepfake related events for social engineering and security failures within their commercial policy offering, Cyberboxx Business.
New AI Endorsement Eliminates AI Coverage Grey Zone
This announcement eliminates ambiguity and cements BOXX’s commitment to providing clear cover for AI-driven incidents for their customers and their broker partners.
AI is creating new cyber and digital threats for small businesses with 86% of US business leaders with cybersecurity responsibilities reporting at least one AI-related incident in the past 12 months. In Canada, the trends follow similar patterns as 81% of Canadian businesses that experienced fraud in the past year also faced an AI-enabled attack. The sophistication of AI and deepfakes is also changing how attacks are carried out, with threat actors leveraging these tools to target and trick employees at scale via enhanced social engineering attacks.
“Threat actors are exploiting trusted relationships amongst employee and executive networks which can result in handing over credentials or misdirecting payments without an actual breach,” said Erik Tifft, Global Head of Underwriting at BOXX Insurance. “That’s why we’ve updated our policy language to address the real risks that businesses, executives and their employees face in the age of AI.”
Pairing AI & Deepfake Coverage with Each and Every Loss Reinstatements for Full Policy Term Protection
This endorsement, coupled with BOXX’s First Party Each and Every Loss, keeps coverage available throughout the policy period by reinstating the policy Aggregate Limit of Liability after each cyber incident. As AI-driven social engineering and deep fake losses ramp up, the risk of having multiple claims over a policy period increases.
“Our underwriting is keeping up with the higher frequency and the changing nature of emerging cyber and AI-driven threats,” continued Tifft, “As a result, we’re continuously enhancing our cyber insurance products with broadened, affirmative coverages to capture emerging cyber threats and new forms of cybercrime, whether they occur via systems breaches or through advanced social engineering.”
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