Different countries are subject to different laws – and that affects cyber insurance as well. Funk CyberSecure is valid worldwide, as long as cross-border insurance is legally permissible in the country in question. But there are some ‘non-admittance’ countries, such as Mexico or China, that prohibit this type of cover. Instead, an insurer requires local approval to offer protection in those regions without breaking applicable law. To address this problem, Funk recommends two different options: taking out local policies or protecting the ‘financial interests of the parent company’ in a master agreement with a financial interest cover clause. The latter option covers financial losses incurred by cyber damages at a subsidiary abroad and is significantly less expensive.
‘But taking out a local policy can offer clear benefits in the event of a claim,’ emphasises Peter Schneider, Head of the Funk Key Account Division. This is because even with a financial interest cover clause, foreign insurers are not permitted to carry out claims management services in ‘non-admittance’ countries, such as offering support for claims or paying out insured sums. And when cyber-related incidents occur, the costs for IT services are frequently incurred directly on site. Local cover is also beneficial when questions of liability in the context of personal data arise. Whether you opt for a financial interest cover clause or a local policy, Funk and its international broker network, the Funk Alliance, are your competent cyber partner in over 100 countries.