American Agricultural Insurance Company (AAIC) has introduced a new turnkey cyber insurance product to protect small business owners and farmers/ranchers from the growing risk of cybercrime.

Dubbed Cyber Coverage, the new cyber insurance product is available for adoption exclusively for Farm Bureau insurance companies.

Explaining the need to avail a cyber insurance coverage, AAIC senior vice president of operations Tim Smith said that the interconnected nature of modern day practices increases the speed and reach of commerce; however, it has created risk for cybercrime and other cyber incidents for businesses.

AAIC has partnered with CyberScout to provide integrated support services to its clients. CyberScout specialises in offering identity protection solutions, identity theft recovery services, and breach services as well as data risk management solutions.

Additionally, AAIC will offer training, marketing collateral, filing support, reinsurance, policy forms, underwriting guidelines, silent cyber analysis, and primary pricing to the Farm Bureau insurers that offer the product.

AAIC executive vice president and CEO Janet Katz said: “At AAIC, we pride ourselves on our service and support for the Farm Bureau insurance companies.

“With our new Cyber Coverage product, our goal is to provide additional value by helping them meet their policyholders’ needs.

CyberScout CEO Matt Cullina said: “CyberScout is proud to partner with AAIC to deliver cyber insurance services to small business owners, including farmers and ranchers, at a time when it is needed more than ever.

“More small businesses are becoming victims of cyber attacks, and the consequences can be devastating. Our services are designed to help businesses reduce exposures and recover fast.”

Growing menace of cyber-attack

Cyber attack is posing serious threat not only for businesses around the globe, but also it is creating threats to financial stability for the global economy with potential losses hitting $200bn.

A report published by the Cyber Risk Management (CyRiM) project – the Singapore-based public-private initiative that assesses cyber risks – has forecast that cyber-attacks could also affect more than 600,000 businesses around the globe.

Sensing the threat, a number of companies including Swiss Re Corporate Solutions, Marsh have launched either cyber risk protection coverage or cyber self-assessment tool for their clients.

In December last year, Bermudian specialty re/insurer Sompo International created a dedicated US team focused on cyber offerings to expand its cyber insurance capabilities in the country.