Specialists and Cyber Insurance Brokers: Why They’re So Important
Do you know the top markets for a large retailer vs. a small hospital vs. a utility provider? Are you up to date with the cyber risks associated with bodily injury and property damage exposure affecting companies like biomedical firms that manufacture implanted devices? Do you know what coverage enhancements to ask for from all the top carriers?
If not, you’re not alone! Cyber insurance coverage can be complex, and finding the right policy can be a challenge. However, a good cyber insurance broker can help you navigate the ever-changing insurance market.
What is a Cyber Insurance Broker?
Cyber insurance brokers, like the experts at ProWriters, are constantly working to bring the right cyber policies to you and your clients. These experts can help you navigate the insurance space and obtain adequate coverage.
For example, not every standard insurer who offers cyber liability insurance can handle all the risks your company faces or provide adequate coverage. In these cases, a cyber security insurance broker can often step in to find specialized lines of coverage to meet the specific needs of each client.
Not All Cyber Insurance Policies Are Created Equally
Retailers are under pressure to write more business while ensuring their clients are protected—and cyber insurance is an excellent place to start. However, when focusing on this coverage, many brokers receive pushback as clients may not understand the risks associated with a cyber attack or what a cyber insurance policy can do for them.
Why is Cyber Insurance Important?
In today’s technology-driven world, the reality is that nearly every business has cyber risk exposure. With ransomware attacks and cyber crime consistently on the rise, the likelihood of a data breach or cyber event (even for small businesses) is higher than ever.
But, why don’t business owners purchase cyber insurance if the risk is so high?
1. They don’t think they’re a target
While the data breaches, ransomware events, and cyber crime incidents we hear about in the news often center around large corporations, small-to-mid-sized businesses are the more common targets. Hackers tend to focus less on target companies and more on specific vulnerabilities that have a higher success rate.
2. They don’t understand the costs of a data breach or other cyber event
Many business owners aren’t familiar with their exposure or just how devastating the aftermath of an attack can be. As the rate of cyberattacks increases, the financial consequences of these cyber threats rise as well, including:
- IT forensic costs
- Breach notification costs
- Credit monitoring costs
- Ransomware events
- Business interruption
- The cost to rebuild
- Crisis management costs
- Third-party claims related to breach of PII
- PCI fines and penalties or assessments
A security breach becomes expensive fast.
3. They don’t understand what cyber insurance offers
Many business owners perceive that cyber policies aren’t worth the expense as they don’t provide much coverage. In a cyber attack, they believe that their business will still be on the hook for many of the expenses. However, today’s cyber insurance products are comprehensive and cover many of the costs associated with a breach.
Finding the Right Cyber Insurance Policy
While most traditional markets have cyber insurance policies, they’re often not current with the most advanced policies available. As a result, retail brokers can be doing themselves and their clients a disservice by only working with their typical standard carriers.
A big part of the outdated insurance issue is that traditional markets are slow to update their policy wordings and distribute them to the field of non-specialized underwriters. By the time they introduce a new policy, it’s already outdated.
If a retail broker is not up to speed on exposures and the carrier offerings, they may not even know what coverage enhancements to ask for from their underwriter. Additionally, many traditional markets do not have specialized claims adjusters with a history of administering cyber claims. The lack of expertise behind these policies means they often lack critical add-on services. Traditional markets often lack cyber risk management services which come with most of the top cyber insurance products.
In short, retailers are often selling their clients an inferior product. In addition to putting their clients at risk, they’re also putting their own E&O on the line should there be a breach that’s only partially covered.
Luckily, there’s a better way—and it comes with using a specialist.
Leveraging a Cyber Specialist
Both retailers and their clients are better off when a specialist like a cyber insurance broker is involved. They can be a wholesale broker or a Managing General Agent (MGA) who has broad access to specialized cyber markets.
From the beginning, a specialist will know the best markets for a specific risk. Such knowledge is especially helpful because the retailer might not have access to the right market or lack certain connections. With no insight, retailers often don’t know what to ask for or how to get the best deal.
On the other hand, the right cyber insurance broker will have relationships with a wide range of vendors in the space to help with risk management services. Don’t shortchange yourself and your client by only approaching traditional markets; use a cyber specialist like ProWriters. When you work with us, you can expect a range of benefits, including:
- Commission starting at 15%
- Quick policy comparison with our Cyber IQ Platform, which provides access to quotes from all the top carriers with an automated coverage comparison (massive time saver)
- Unparalleled access to numerous special markets—We can place from the smallest account to the largest with up to $100M in limits available
- Exceptional service around exposure analysis, coverage recommendations, and cyber risk management
Let us help find your clients the perfect cyber policy. Contact us today and speak with an expert from ProWriters!