Validus Specialty Underwriting Services has launched a new product to cover cyber-risk.

The stand-alone product from the US subsidiary of Bermudian-based Validus Holdings is focused on privacy and network protection coverage, the company said today.

It aims to meet the cyber-risk challenges faced by US companies with revenue between $150 million and $2.5 billion, and to offer comprehensive cyber insurance protection with risk mitigation and remediation services.

Validus last month agreed to be acquired by American International Group in a $5.6 billion all-cash deal.

Jackie Lee, Validus Specialty’s vice-president of cyber technology and errors and omissions, said: “Cyber exposures change rapidly. Increasingly, businesses beyond the enterprise level understand robust cyber insurance solutions are essential to their risk management.

“With this product, companies will have the protection they need, complimented by extended vendor services to help navigate incidents.”

The product has been designed to provide cyber insurance protection across a range of client industries. It will be written out of Validus Specialty’s operations.

Jonathan Ritz, chief executive officer of Validus Specialty added: “With this new cyber insurance product, our underwriters are meeting the needs of US brokers and clients by broadening our suite of offerings yet again. I’m pleased to see this group consistently expanding; it’s a lynchpin in our insurance growth strategy.”

Validus Specialty offers a wide range of E&S and admitted insurance solutions and operates on behalf of Validus’s US insurer Western World Insurance Group and its Lloyds insurer Talbot Underwriting Ltd.