Liberty Specialty Markets and Baobab Insurance launch E-Crime insurance for SMEs

Liberty Specialty Markets (LSM), a division of Liberty Mutual Group, and Baobab Insurance, a digital technical risk underwriter, have partnered to introduce a new e-crime insurance product designed specifically for small and medium-sized enterprises (SMEs).

Under the collaboration, LSM will provide capacity for the new product, while Baobab will handle operational aspects such as broker sales, product development, and underwriting.

The new policy offers up to €5 million in coverage, addressing the growing threat of sophisticated digital fraud like CEO fraud and deepfakes.

“This fidelity insurance sets a new standard for protecting SMEs against digital fraud,” a spokesperson stated, highlighting its tailored approach to emerging threats.

The product distinguishes itself with a simplified application process, requiring only five key risk questions: Number of employees, Annual turnover, Activities in sanctioned countries, Existence of a dual control principle for invoicing, and Existing fraud prevention measures.

Michael Harth, General Manager, Germany, Liberty Specialty Markets: “As a specialist insurer, it was important for us to find a partner with in-depth expertise in the area of cyber risks. With Baobab, we have exactly this specialist at our side.

“Together, we are launching a product on the market that finally provides SMEs with efficient protection against e-crime – without an excessive application process.”

The launch aims to address a critical gap in the market, as traditional insurers struggle to keep pace with the evolving digital threat landscape. Notably, CEO fraud and deepfake incidents surged by 17% in 2023, driven by advancements in generative AI.

Vincenz Klemm, co-founder and Managing Director of Baobab Insurance: “Issues such as CEO fraud and deepfakes are a real threat to SMEs. Together with our existing cyber and IT liability insurance policies, we are now offering these companies a comprehensive range of services.

“In line with our strategy, we are thus positioning ourselves as a digital specialist insurer for technical risks.”

The standalone e-crime insurance will be available from March 2025 and will subsequently be integrated into Baobab’s cyber application process.

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