Google (NASDAQ: GOOGL ) has teamed up with two global insurers to cover cyber-attacks and risks related to businesses using its cloud services, the first time a major provider has provided coverage for its customers, the companies said Tuesday.
Big insurers have been wary of cyber risks for years, but the partnership between Google, Allianz (DE: ALVG ) and Munich Re (MI: MUV2 ) gives insurers special access to data to see what controls are in place client firms to help them assess risk.
“This is extremely key. This is data that we as insurers have traditionally not had access to,” said Thomas Kang, head of North America cyber, technology and media at Allianz’s AGCS unit.
Initial target customers are US-based companies with annual revenues between $500 million and $5 billion.
“We didn’t want to overdo it on our first outing. But the plan obviously is to expand this offering both up and down the revenue ladder very soon,” said Bob Parisi, head of North American cyber solutions for Munich Re.
The insurers, both based in Munich, will cover up to $50 million in potential losses.
The data provided by clients means insurers will extend coverage for lost earnings up to a full year, from a previous maximum of six months.