Cyber Liability Insurance Solutions from ProWriters

Cyber Liability Insurance addresses gaps in coverage left by other existing insurance products. There have been numerous high profile cases of cyber claims being rejected under Commercial General Liability (CGL) policies. Cyber Liability coverage is a dedicated insurance product that covers the cyber-specific exposures typically excluded from a CGL policy.

The need for Cyber Liability Insurance is growing as illicit cyber activity continues to proliferate on a global scale. Cybersecurity Ventures estimates total global losses due to cybercrime will exceed $6 trillion in 2021. That’s three times larger than the U.S. auto industry and more profitable than the entire global drug trade.

Small and medium-sized businesses (SMBs) are particularly vulnerable. The National Cyber Security Alliance reports that over 70% of all cyber attacks target small businesses. SMBs that do any business or store any records online need dedicated Cyber Liability protection. ProWriters works to help brokers provide that protection with our streamlined tools and services.

ProWriters Insurance offers a broad and comprehensive Cyber Liability Insurance program. These competitive policies cover the 1st and 3rd party costs associated with a breach that are not covered by a General Liability policy. 1st party costs include:

• IT Forensic Costs
  
• Notification Costs
  
• Credit Protection Costs
  
• Crisis Management Costs
  
• Crime and Social Engineering Costs

Cyber Liability Insurance also covers 3rd party costs associated with a data breach. This includes:

• Breach of contract
  
• Negligent protection of data
  
• Network security breaches
  
• Transmission of software viruses
  
• Denial of service attacks
  
• Defense of claims and regulatory actions related to a breach
  
• Fines, penalties, and assessments

Our policies also cover additional costs associated with cyber extortion / ransomware, business interruption, and digital damage assessments. All of these coverages are designed to help businesses survive the initial costs of a cyber incident and mitigate the fallout in the days, weeks, and months that follow.

Cyber Liability costs can be crippling to businesses. According to the National Cyber Security Alliance, approximately 60% of SMBs go out of business within six months of a cyber attack. Our dedicated Cyber Liability policies cover the high costs of a cyber incident. Below are some examples of cyber incidents with costs based on real cyber claims.

Incident: A small e-commerce business falls victim to a ransomware attack after an unwitting part-time employee opens a phishing email. The ransomware attack encrypts vital company files, with a decryption key available only if the company pays the demanded ransom.

Total cost to the business: $68,000

Assessment: While the cost of the ransom payment may be high, there are associated costs that can cripple a business, such as business interruption or reputational damage. Viruses and malware cost SMBs an estimated $68,000 on average, according to a Kaspersky Lab study. For large enterprises, the average cost is $519,000.

Incident: Cybercriminals target a medium-sized accounting firm. They successfully perpetrate a cyber breach and steal files with personally identifiable information of clients including names, addresses, and social security numbers.

Total cost to the business: $188,000

Assessment: The fallout from a targeted cyber attack can be fatal for SMBs. The costs associated with these incidents include notification costs, regulatory defense, fines, and penalties, and lost revenue. A Kaspersky Lab study found that SMBs lose approximately $188,000 on average from a targeted attack. Similar incidents for larger enterprises can cost more than $2,000,000.

ProWriters Cyber Liability Insurance is designed to cover these costs so a cyber incident doesn’t have to put your clients out of business.

ProWriters is dedicated to providing sophisticated and streamlined solutions for insurance brokers and agents.

We simplify the process for obtaining Cyber Liability Insurance quotes from multiple carriers through our innovative Cyber IQ Comparative Rate Platform. This groundbreaking solution for brokers and agents allows users to:

• Complete one simple application for several carriers
  
• Instantly compare rates from multiple carriers
  
• Receive multiple quotes with a detailed coverage comparison
  
• Access all previously issued quotes and binders in one centralized location
• Easily provide renewal lists for bulk quoting of many accounts at one time

With this powerful tool, data entry takes less than one minute and comparing quotes is easy with a user-friendly interface. Our online platform significantly cuts down on the wait time brokers and agents face when they work through a wholesaler or go direct to their markets. With the ProWriters Cyber IQ Comparative Rate Platform, comparing quotes has never been easier.