Cyber Insurance For Real Estate

A new generation of building management systems and the internet of things are leading to ever smarter buildings, creating new cyber risks and liabilities for property owners.

Investment in smart buildings is growing at a pace - the smart building market is expected to reach USD 24.73 billion by 2021.

Sensors and connected devices are now routinely being fitted to new buildings to monitor temperature, light, motion and humidity.

While more advanced smart technologies allow occupants to interact and control their environment. Despite the benefits, smart buildings are known to be vulnerable to cyber-attacks.

With vital systems like sprinklers, locks and lifts becoming more digitised, the probability of cyber intrusions and ransomware has increased.

Vulnerabilities in cyber defences would give hackers access to all the company’s buildings, including environmental controls for a data centre. Building management systems can also act as a springboard for attackers to access a company’s wider IT systems.

We can help property owners, managers and investors manage their cyber risks.


Cyber Insurance For Real Estate

JLT have created an exclusive solution for property owners, managers and investors.

Real Estate Assurance for Cyber Threats (REACT) is a tailored cyber insurance product that helps with the uninsured gaps in your property insurance portfolio.

It would also be useful for financial institutions, investment funds, pension groups and asset managers who have a vested interest in property.

Coverage includes:

  • Loss of rental income and increased costs of working, including forensics, resulting from a cyber-event
  • Coverage for building management systems that are operated by third parties, as well as the insured
  • Property shutdown by regulating authorities following a cyber-event, such as the Health & Safety Executive
  • Landlords’ liability to tenants resulting from a cyber-event
Cyber Insurance For Real Estate
  • Liability for loss of quiet enjoyment, including defence costs, caused by a cyber-event
  • Flexibility to work with existing IT partners.

In developing this solution, JLT has consulted with some of the leading real estate companies to ensure that property owners, managers and investors stay protected in the event of a cyber-threat.

JLT’s REACT builds on the following coverages offered by standard cyber standalone policies:

  • Incident response
  • Data restoration
  • Defence and extortion costs
  • Lost income
  • Increased costs of working
  • Liability.

Standard terms, conditions and exclusions will apply to a policy so it is important to work with your broker to ensure that the coverage meets the needs of your business.

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In the current climate of increasing automation, having comprehensive cyber cover is more important than ever to protect your properties and your pockets.

With vital systems like sprinklers, locks and lifts becoming more digitised, the probability of cyber intrusions and ransomware has increased and could cause a lot more damage than traditional systems allowed.

JLT’s REACT aims to tailor policy coverage around your specific needs and fill in the uninsured gaps in your current insurance portfolio to ensure that you are prepared for a whole host of potential cyber threats that could impact your properties.

Our solution can be applied in the case of a ransomware attack that impacts building management systems.

According to Verizon’s 2018 Data Breach Investigations Report, ransomware attacks were the most prevalent variety of malware in 2017.

Ransomware could disrupt key facilities like heating, ventilation, lifts and sprinklers in your properties, affecting their usability.

This could either inconvenience your tenants or impact the health and safety rating of your building, which could potentially result in the property being closed until the necessary facilities were fixed.


We are aware that you have a choice of who represents you, so why choose JLT?

  • We stay close to the pulse of the vibrant London insurance market and leverage our relationships and knowledge
  • Our deep technical knowledge means that we do not accept any insurer's standard policy form and will work tirelessly to ensure you receive a differentiated result
  • Claims advocacy is a vital part of our offering to clients. We link it to placing and wording to ensure that clients receive a full circle and joined up approach. Our claims advocates will provide you with tailored policy wordings, advising you about notification and coverage, and work with you and your insurers to achieve successful resolution of all claim-related matters
  • We host training workshops and establish regular meetings with clients
  • We create content that highlights the latest risk trends and aims to simplify concepts that may seem confusing to individuals with limited experience in technology. This includes our monthly newsletter, Cyber Decoder, in- depth whitepapers as well as a wide range of educational videos and materials
  • We know we can’t do it all (penetration testing, incident response drilling, technical security advice) and so we seek unique partnerships, to bring you cutting edge solutions.
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