You want to do more than sell policies to your business clients. You want them to understand why these policies matter. Making the case for cyber risk management, for example, means showing how an issue that may seem too abstract or technical can affect a business’s bottom line.
At ProWriters, we work with professional liability experts across multiple industries to determine best practices for large groups of clients. We often do so in conjunction with our underwriting services, which employ innovative risk management strategies designed to meet specialized needs and limit liability.
We also offer extensive support to our registered brokers as they educate clients, about not only cyber security risk management but also other risks businesses face.
3 Broad Business Areas Needing Risk Management Services
What is the risk management process? It’s the process by which individuals or corporations identify risks—the internal and external factors that could adversely affect goals—and mitigate them.
For businesses, one crucial component of managing risk is acquiring insurance to limit their financial exposure should they be held liable for those adverse outcomes. Loss prevention is central to good risk management services.
Here are three basic areas in which businesses frequently face risks they must manage:
- Errors and Omissions (E&O)
For many reasons, some within their control and others outside it, providers of professional services don’t always deliver. When these failures damage their clients’ finances or reputation, businesses may find themselves defending an E&O claim in court.
Even if the business made no mistakes and isn’t held liable for damages, court costs, attorney fees, and settlements can prove too much to pay out of pocket. For this reason alone, an E&O Insurance policy (also known as Professional Liability) is a necessary part of any business’s overall risk management framework.
- Commercial General Liability (CGL)
Not every risk a business runs is specific to its industry. CGL policies protect against financial fallout from claims of bodily injury to third parties, damage to third parties’ property, harm caused by products sold, and injury caused by advertising (for example, claims of libel).
Small businesses sometimes choose a Business Owners Policy (BOP). BOP coverage combines CGL insurance with insurance for the company’s own property—to manage such risks as fire, natural disaster, and theft—with Business Interruption (BI) Insurance. BI is an important tool for loss prevention since it replaces income lost during such events.
- Directors and Officers (D&O)
The idea that the corporation is a person is a long-established legal fiction. But third parties with grievances against corporations can and do sue the elected board of directors and its board-appointed officers.
Directors and Officers (D&O) Insurance protects board members from having to pay for legal fees and settlements out of their personal assets. Strong policies provide comprehensive coverage against such claims as breach of contract, harassment and discrimination, misuse of funds, and losses due to bankruptcy.
Businesses Also Need Cyber Risk Management Services
As mentioned earlier, cyber risk management may be one area in which you need to take more time and care educating your business clients.
Such digital dangers as ransomware attacks and data breaches increasingly make headlines. But many businesses, especially small businesses, simply don’t consider cyber security risk management a top priority. This inadequate attention to the risks persists despite the reality that small and mid-sized businesses are no less vulnerable to cyber attacks than are large ones.
Cyber attacks put businesses in jeopardy on several fronts.
- The attack itself can bring down the company’s network and end points—interrupting business, causing revenue loss, and leading to high IT repair and restoration bills.
- Cyber extortionists can demand increasingly steep ransom payments before releasing encrypted files.
- Hackers can access and exfiltrate sensitive data, leaving companies to pay the price in regulatory fines, forensic investigation costs, and public relations nightmares.
Businesses can do several things to protect themselves against today’s proliferating cyber threats. These steps include:
- Keeping software up to date.
- Using security controls like strong passwords, multifactor authentication, and secure email gateways.
- Backing up data proactively and on a regular basis, and storing backups not only in the cloud but also at secure physical locations offsite.
- Developing a cyber incident response plan.
- Obtaining a robust Cyber Liability Insurance policy.
Even a modest amount of cyber security risk management can help mitigate the danger a cyber attack poses.
And the more seriously a business manages the risk, the more likely it will be to survive a cyber incident. It may not be unscathed, but it will be well-positioned to recover.
Equipping Brokers to Help Business Clients Manage Cyber Risk
ProWriters and the carriers with whom we work give your business clients access to excellent risk management and loss prevention services. These services could drastically reduce your clients’ risk.
Helping your clients find the right cyber liability policies for their needs and budgets is the best contribution you can make to their cyber risk management.
When you’re a registered ProWriters broker, you can use our innovative Cyber IQ Comparative Rate Platform. It allows you, in mere minutes, to gather multiple cyber insurance quotes from top insurance companies for side-by-side comparison.
Would you like a free resource you can use to educate your business clients about the importance of cyber security risk management? Download your PDF copy of our infographic, Cyber Risk Management 101.
It shows at a glance five key things organizations must do to enhance their information security, guarding their data and themselves from cyber attacks’ potentially harsh financial consequences.
Show the infographic to your clients and discuss it with them. It will help them focus on this pressing concern and motivate them to take action with you to acquire the cyber liability insurance they need.
To find out more about how ProWriters can help you quote and sell those policies to them, schedule a time to talk with us, or call (484) 321-2335.