Specialized Insurance Requires Specialized Experts
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/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. A cyber insurance broker can help you navigate this ever-changing market.
What is a cyber 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 this space and obtain adequate coverage. Not every standard insurer who offers cyber insurance is equipped to handle all risks. 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 individual client.
Not All Cyber Insurance Policies Are Created Equally
Retailers are under pressure to write more business while making sure 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 client has cyber exposure. With ransomware and cyber crime consistently on the rise, the likelihood of a data breach or intrusion (even for small businesses) is higher than ever.
If the risk is so high, why don’t business owners purchase cyber insurance? There’s a number of reasons:
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 are often centered around large corporations, in reality, small-to-mid-sized businesses are the more common targets. Hackers tend to focus on smaller, easier targets that have a higher success rate, rather than waste their time on a complicated attack against a corporation with extensive cyber security controls.
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 increase, the financial consequences of these 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 have the perception that cyber policies aren’t worth the expense as they don’t offer much coverage. However, today’s cyber policies are actually comprehensive and cover many of the costs associated with a breach.
Finding the Right Cyber Insurance Policy
While most standard markets have a cyber insurance policy, it’s often not current with what’s available. As a result, retail brokers can be doing themselves and their clients a disservice by placing this coverage with their standard markets.
A big part of the issue is that standard markets are slow to update their policy wordings and distribute it to the field of non-specialized underwriters. By the time they introduce a new policy, it’s already out of date with what’s available in the market. If a retail broker is not up to speed on the exposure and the carrier offering, they may not even know what coverage enhancements to ask their underwriter for. Additionally, many of the standard 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.
In short, by trying to place this type of risk directly with a standard market, retailers are often selling their client 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. This 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 top markets to go to for a specific risk. This is especially helpful because the retailer might not have access to the right market or lack certain connections. This often means that retailers 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 this space to help with risk management services.
Don’t shortchange yourself and your client by only approaching standard 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 Comparative Rate Portal, get 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 benchmarking services
Let us help find your clients the perfect cyber policy. Contact us today and speak with an expert from ProWriters!