US Pro CLUE Blog

US Pro CLUE Blog

Cyber Liability Underwriting Exposures (CLUE) is a leading industry news source and information medium specifically developed by US Pro for its agency partners.

CLUE gets its information from many resources, including industry experts, underwriters, insurance publications, and multiple web-based articles to keep our customers current in the areas surrounding Cyber Liability Insurance programs.

 

What’s In Your Cyber Coverage?

Posted by on Oct 13, 2016 in Cyber Source | Comments Off on What’s In Your Cyber Coverage?

Cyber Insurance is more than just an insurance policy.

It is really a complex series of coverage forming a digital fire package policy. An even more in depth look at the coverage reveals that each coverage is very specific and therefore, very different from carrier to carrier.

So you need to ask yourself the question “What’s in your Cyber coverage?” The answers may be very revealing for you. The following are just a few of many important rules of thumb to consider during the Cyber Liability purchase process:

1. Named Exclusion Policies: Be wary of carriers who spend more time defining what is covered rather than itemizing what is excluded. A named exclusion policy is always better. Under a good Cyber policy, language will be intentionally broad and loose in its nature, rather than limiting in scope by specific definition.

2. Coverage Triggers: Just what is it that triggers the coverage under the insuring agreement? There are many differences in what kinds of events cause the policy to respond, so choosing the wrong policy may leave your customer uninsured for certain types of events.

3. Insuring Agreements: Each carrier writes its own language for a Cyber Liability policy. This lack of universal approach by the market creates huge variance in the coverage. One of the biggest variances today is in the extent of the coverage provided by each insuring agreement in the policy. For example, Cyber Crime provided by many carriers offers less coverage than that provided by a leading carrier. Know the difference in these, as this really matters when a claim comes in.

US Pro is the best there is at recognizing and identifying gaps in existing coverage, as well as the correct placement of your customers into programs that will maximize their protection. Our knowledge of the coverage that leads to success for our agents is a big reason why we say the most important thing in Cyber Liability is “Be an expert, or use one.”

 

Become an Online Cyber Producer!

As America’s Cyber Insurance Expert, US Pro Insurance Services invites you to gain access to online Cyber rating platform which is exclusively available only to US Pro customers!!

This exciting online system allows you to quote the leading Cyber coverage in the country right in your office. Best of all, your customer will enjoy the enhanced coverage benefits of the program.

Are you looking to produce Cyber quotes in less than 2 minutes which you can bind online?

Contact Kevin Sneed at ksneed@usproins.com to sign up today for this valuable new service offered by US Pro!

The Dollar Impact of Employee Negligence

Posted by on Oct 13, 2016 in Cyber Source | Comments Off on The Dollar Impact of Employee Negligence

Like some other types of insurance, employees are the biggest risk to a business as the source of a cyber event. Unintentional employee negligence comes in many forms, and its impact to the Cyber Insurance industry as a whole is enormous. Consider some of these statistics that help define the impact of any one employee’s single mistake:

  • Average Cyber claim is more than $200K
  • Employee negligence causes more than 80% of all claims
  • Over 40% of all privacy breaches are caused by mobile devices lost by or stolen from employees.
  • Employees are number one target of phishing attacks
  • Employees are most likely cause of virus and malicious code downloads to a network.

Given the statistics above, more likely than not your customer’s own employees will unintentionally expose their business to a significant dollar loss. Without Cyber Insurance in place, they can then be exposed to being one of the 70% of businesses who go out of business following a privacy breach.

Simply put, a single Cyber claim event can close your customer’s doors for good. They simply can no longer afford to go without it.

How to Respond to the Top Reasons Insured’s Think They Have No Risk

Posted by on Aug 16, 2016 in Cyber Source | Comments Off on How to Respond to the Top Reasons Insured’s Think They Have No Risk

Answering Myths on Cyber Insurance

Cyber Insurance is becoming more common in terms of knowledge of its availability, and awareness of some of the kinds of events that can happen. This is a step in the right direction for commercial business, and will lead to more Cyber Insurance purchases.

However, there is continuing confusion on some key exposures and coverage elements that cross industry groups. This creates the common myths of Cyber Liability Insurance. Knowing how to respond to these myths with prompt and concise information is important to demonstrating your own Cyber expertise and to closing the sale.

We have made a list of the 3 most common mths we hear of and crafted for you a way to respond to these assumptions that commercial insured’s make. These will be invaluable to you as you begin quoting more and more of this coverage.

We Outsource, therefore, we have no risk.
Countless commercial enterprises outsource their data storage, networking systems, applications and programs, and other aspects of their digital fingerprints to third party providers and cloud storage services. This offshoring of information and security management comes with it a sense of invincibility or lessening of risk.

Part of this comes from the contractual language and hold harmless or indemnification agreements. While these are both important and a necessity, they are not a replacement mechanism for your legal liability should an event occur. Mores noticeably, they often do not provide coverage for third party claims against the Insured, but instead, focus solely on the cost to correct any errors.

Regardless of the type of outsourcing being done, the Insured will maintain two areas of liability that cannot be transferred: 1. The requirement to notify impacted individuals, and provide them with support services, and 2. The potential to be sued as a result of an event.

No data, therefore, no exposure
Another popular response from a potential Insured is that they do not collect or store any data of their customers, therefore, they have no exposure. For example, this is often a response from a manufacturer, or a commodities broker- businesses dealing in paper invoicing and no direct retail contact.

While the risk of a broad information breach is minimized with the lack of valuable PCI or PHI records, the theft of this information is only one of many different types of exposures any one business faces. A manufacturer relying on automated machine technology could have costly business interruption expenses if infected by a virus or a victim of an extortion event. A commodities broker dealing in electronic transfers of payments for orders could become a social engineering victim resulting in Cyber Crime losses.

Understanding the kinds of losses any one industry class faces underscored for the Insured the real risk they face.

We are too small to be a target.
In the world of Cyber Insurance, size does matter. The largest corporations, governmental entities and nonprofits maintain Cyber Insurance, mostly due to the threat they face as a target BECAUSE of their size. Alternatively, small entities in these same classes do not purchase Cyber Insurance for exactly the same reason- BECAUSE of their size.

The truth about small businesses, governmental entities, and nonprofits is they are at very high risk for a number of events, and it in fact is BECAUSE of their size. Smaller commercial entities have less resources devoted to the management and maintenance of technology they use to run their businesses. They are big users of cloud services and outsourced providers. They are easy targets for cyber extortionists.

Many are considered to be a minnow used to get to the bigger fish. A hacker will gain unauthorized access into your systems for the purpose of gaining access to an even larger business partner or governmental agency you communicate with. When successful, they can steal that third party’s information or infect their systems, leaving you responsible for allowing it through your systems.

The moral of the story here is that small business has the same threat of being a target as any other business does.

Experienced Cyber Liability Brokerage Makes A Difference.
Unlike other wholesale brokers, we are not just making Cyber easier to market. US Pro is a featured speaker to associations and industry groups about Cyber Insurance throughout America.

Our webinars and seminars are in constant demand. We spend a lot of time on the phone with you AND your insured’s, easing concerns, identifying exposures, and closing deals.

Cyber is not an ISO coverage, it is not another D&O form. It is the first insurance, the most important insurance, and the insurance to be most likely used by any commercial entity. Underinsuring your customer by making the wrong Cyber choices can be a very expensive choice to make.

When making your Cyber choice, choose an experienced broker. It matters. Send your submissions to us today at ksneed@usproins.com for same day turnaround service!

Solving the Awkward Discussion about Cyber Liability

Posted by on Jun 10, 2016 in Cyber Source | Comments Off on Solving the Awkward Discussion about Cyber Liability

Solving the Cyber Problem

By now, everyone has heard of a data breach. Network extortion is trending, and most people today are so familiar with phishing, they can recognize its unique spelling. Despite all of this, many challenges exist with convincing a commercial insured to buy the coverage, understand what their imminent risk is, or what a Cyber policy provides.

This is called the “Cyber Problem”. Solving it means understanding its existence and why.

First, it is complexity. Cyber insurance policies are very diverse and different in the coverage that they provide. The lack of uniformity in the coverage requires premium to be secondary to coverage in the buying decision. This contradicts most insurance buyer tendencies, however, can result in dire consequences if not followed.

Second, it is specificity. One of the loudest arguments made by any Insured is “I do not have….. Pick the ending to complete the sentence- …customer records. Or …credit card transactions. Or …exposure since all of my stuff is in the cloud. While all of those may be true statements, it means that other real areas of exposure that do exist are being discounted. This insured mindset underscores the importance of understanding all of the potential claims any specific insured or industry faces so that they can be married to the right coverage form.

Lastly, it is simplicity. Cyber is new, it adds to a business’ insurance costs, and it is difficult to understand and explain. Applications can be arduous and time consuming for an Insured. Simplifying the process of getting an indication encourages the discussion with an insured, but US Pro goes one step further.

We believe that empowering our customers with indications from multiple carriers offering quality coverage without the need for applications and questions forces the discussion with the customer. Armed with resourceful information on exposures the customer has and the cost to protect them against claims, the sales process will dramatically improve for you.

Best of all, we have a lot of different ways this can be done, and multiple carriers who we do this through. YOU get the freedom to pick whichever method best suits your immediate needs.

No App Quoting System
Simply enter a few pieces of information online here, and US Pro will send you back 2-4 indications from some of the broadest coverage programs for your consideration. It takes less than 2 minutes and no application is needed to get indications.

The US Pro Customers Only Exclusive
Recognizing US Pro as America’s Cyber Insurance Experts, one of the leading Cyber carriers in America has given US Pro an exclusive program available only to customers of US Pro. This new program cannot be accessed any other way except through US Pro. The standard industry-leading program has been further enhanced to include full prior acts coverage, higher Cyber Crime limits, lower limit options of 250K, and lower minimum premiums. Use the No App Quoting System today and start getting your access to these new blockbuster enhancements.

Pre Priced Application Rater Option
Another one of our leading programs has introduced an innovative way to get both an indication AND application at the same time! The rating program and coverage options have been built into the application, so as it is completed, the indication is also completed. This is an excellent way to quote many business classes on admitted paper for accounts under 100M in revenues who need limits up to 2M. Contact us today to get your access to this awesome new way of doing the Cyber sales process.

Monthly Spreadsheet Advance Quoting
Our favorite tool yet, this combines the elements of all of the above into one easy to use format developed to engage the Cyber sales process for every commercial insured you currently write while protecting your own E&O exposures.

Simply complete the name, address, description of operations, and total revenues for each commercial insured into the spreadsheet by month. Send it back to us 30 days prior to the beginning of each month, and we will send you back multiple quote options, our recommendation, and a checklist for each of the accounts on the spreadsheet.

When meeting with the Insured for the renewal of their other coverages, you will then be able to present and discuss the Cyber proposal for the Insured. If the decide to move forward, we can complete the application. If they decide not to move forward, they can sign and date the checklist we provide to you acknowledging their declination of it. For your part, you end up with more sales, a better reputation with your customers, and protection against E&O suits for failing to offer the coverage to an insured.

Experience Matters in Cyber
Unlike other wholesale brokers, we are not just making Cyber easier to market. US Pro is a featured speaker to associations and industry groups about Cyber Insurance throughout America. Our webinars and seminars are in constant demand. We spend a lot of time on the phone with you AND your insured’s, easing concerns, identifying exposures, and closing deals. Cyber is not an ISO coverage, it is not another D&O form. It is the first insurance, the most important insurance, and the insurance to be most likely used by any commercial entity. When making Cyber choices, choose experience. It matters.

 

D&O, EPLI, and E&O Experts!

We have been doing D&O deals since 1986, EPLI deals as one of the fathers of EPLI since 1989, and Professional Liability since 1992.

We started as underwriters of the products first. We evolved into MGA’s of the products we serve next. Since 2008, we have become America’s brightest and best broker of these products. We know the coverage inside out, we know how the risks are rated, and how the rates are developed. This insider knowledge of how the system works means we just get better deals done for you.

Check us out today and send in your submission for D&O, EPLI, Fiduciary, Crime, E&O or Professional Liability of any size or kind. We can help on all of them!

 

JULY 1 RUSHES!!!

We love the RUSHES and we also know that without having competitive options, your renewal is at risk if its not already with the right carrier. Let us help you test that out and send in your JULY 1 RENEWAL today and let’s see what we can find for you!

Buyer Beware: What is really included in your Cyber policy?

Posted by on Jun 8, 2016 in Cyber Source | Comments Off on Buyer Beware: What is really included in your Cyber policy?

The Proof is in the Policy

Understanding Cyber Insurance policies is a daunting task. The policy language from carrier to carrier is unique. New carriers continue to emerge, and new policy forms are born, exasperating the problem for the retail insurance agent. Wholesale brokers are not specialists in the coverage, and carriers themselves do not provide comparisons of their forms to others.

So how do you determine what form is better than another? The common practice is to look globally at the coverage parts provided and the limit of liability for those coverages. This approach is useful in understanding basic coverage or limit differences, but the important part of understanding the coverage is to dive much deeper into the policy.

Let’s take a minute to review Cyber Liability in its simplest form. Cyber Liability Insurance is a COMMERCIAL PACKAGE POLICY that protects the Insured’s digital assets from a variety of potential risks. Some of these are liability-based coverages in nature, and some of these are property-based coverages. Each of the 3 liability coverages have a limit of liability, and all of the first-party costs coverage have their own limits. All of the sub-limits are subject to a policy aggregate.

From this foundation, start asking yourself some more important questions, such as:

  • What kind of wrongful acts are included in Multimedia Liability coverage? What kind of Media is included?
  • What is included in a Security Breach? What is included in a Privacy Breach?
  • What triggers the first party coverage components?
  • Are prior acts covered?

 
These are just a few of the important questions to consider. Many others are appropriate to review from coverage part to coverage part. Recommending the wrong Cyber coverage can be a costly error for the agent to make.

Remember, US Pro is America’s Cyber Insurance experts, so if you need a quote today simply send us your submission to ksneed@usproins.com or click HERE to submit your account through our online portal.

Let us give you some AWESOME Cyber quotes on your July 1 D&O and E&O renewals for you to cross-sell!!

Cyber Liability and the 4 Dollar Benchmark

Posted by on May 12, 2016 in Cyber Source | Comments Off on Cyber Liability and the 4 Dollar Benchmark

The 4 Dollar Benchmark

Although Cyber Insurance is more well known across the agency landscape, still most agencies are not quoting it on every commercial risk. Despite the fact that the highest probability of loss for almost any business today is a Cyber event, commercial insured’s do not understand the real scope of their risk, and the effect the consequences of such an event can have.

We are often asked by our agents what the average Cyber claim/loss amount is. This is a question that cannot really be answered due to the third party/first party nature of the coverage. Many different parts of a Cyber policy can be triggered by a single event, however, there is no real formula for when this is more likely to happen.

Instead, the better approach for the agent is to measure your customer’s MINIMAL exposure using simple math: Total # of records x $4. The sum of this formula is the minimum amount of out of pocket cost a commercial entity will spend in order to respond to the breach. Again, this is only the first party notification costs and nothing else, which all entities will pay should they experience a privacy breach.

Next week we will focus on the biggest hidden danger in purchasing Cyber Insurance of any kind today: the extreme difference in the policy language and knowing what is really covered from carrier to carrier.

Remember, US Pro is America’s Cyber Insurance experts, so if you need a quote today simply send us your submission to ksneed@usproins.com or click HERE to submit your account through our online portal.

What’s the Difference in Cyber Liability Insurance Anyways

Posted by on Apr 6, 2016 in Cyber Source | Comments Off on What’s the Difference in Cyber Liability Insurance Anyways

What’s the Difference?

Any Cyber Insurance policy is filled with many kinds of coverage parts. These can range from the barest of coverage forms, generally those used by carriers who add it on to a package policy, to the broadest coverage forms used by the leading carriers today.

So how do you choose the right policy? How do you know what the exposures are? These and many other questions are left unanswered, and agents are not given the right tools to get the answers their commercial insureds need.

US Pro is America’s Cyber Insurance Experts. Today, we want to focus on a few important differences that will make a big difference in coverage when an event does occur.

Coverage Triggers
The first step to having the right Cyber coverage is making sure that all the coverage parts needed are included in the policy. However, there is much more to this than just the coverage itself. A good understanding of how the coverage is triggered and by what events is what matters the most. Having the coverage included on the policy is great, but if an event is not a covered cause of loss that triggers the coverage to respond, the Insured is out of luck.

Limits of Liability
Cyber Liability policies are written with one overall aggregate limit for the policy period. Yet within this limit, coverage is then segregated between third party coverage and first party coverage components. Third party coverages have an aggregate limit, and first party coverages do as well. Together, they cannot exceed the policy aggregate, which in most cases is the same amount. Hidden within these general limit practices are the sub-limit of liability amounts for each specific coverage part. It is very important to understand which coverage parts are most likely to be triggered and then to maximize the best sublimit possible for these coverage parts.

Definitions
Another big difference with the various Cyber forms is within the definitions themselves. Key definitions to consider include who is an Insured, the several types of Wrongful Acts covered, as well as what the Covered Causes of Loss are. While coverage can seem and sound broad in scope, the definitions of the policy can be limiting and in some cases exclusionary as compared to other Cyber forms.

Coverage Components
Choosing the right coverage parts is the most important part of the Cyber process. Having strong coverage components is akin to laying the foundation of your entire Cyber program. Using the other considerations written about herein, building the policy with the right coverage parts triggered by broad events, strong coverage provided by the policy definitions, and effective and reasonable sub-limits is the best approach to take in creating your customer’s Cyber coverage.

Claims Management
Once you have built for your customer the right Cyber coverage, it must include strong Claims Management and response provisions. The Insurer should provide the policyholder with resources for immediate assistance in responding to and managing an event under the policy. Having strong Claims management and effective event response is the most important part of mitigating the potential financial impact and reputational harm to an Insured.

There are many other working parts to the Cyber policy, some of which have huge repercussions to an Insured when a claim does occur. Cyber is unlike any other insurance we have seen. It is a complicated Package policy for the intellectual property of an Insured, and no two carriers are the same. Expert product knowledge matters more in Cyber Liability than any other line of insurance a commercial insured can purchase.

It is imperative you make the right choice for your client. You must be an expert, or use someone who is. As America’s Cyber Insurance Experts, we invite you to choose us.

To get your cyber quote today, simply fill out the online submission form, by clicking here!

Exclusive Cyber Program Available Only to US Pro Customers!

Posted by on Mar 29, 2016 in Cyber Source | Comments Off on Exclusive Cyber Program Available Only to US Pro Customers!

America’s Cyber Insurance Experts Just Got Even BETTER!

 
US Pro Insurance Services, nationally known as America’s Cyber Insurance Experts, is excited to announce that we have been exclusively selected to roll out a new enhanced NetGuard program tailor made for US Pro customers nationwide!!

This exciting new variation of the leading coverage form in America, is specially designed for US Pro and its customers to better serve the Mainstreet America insureds they represent. As a result of our feedback to the underwriters, and our expertise in the line of business, the carrier has developed important enhancements that will result in many more successful sales while maximizing coverage available to them.

Exciting NEW Lower Limit Choice and Lower Minimum Premiums!

  • Minimum limits begin at $250,000 limit of liability starts at $400
  • Minimum premium for $1,000,000 limit of liability starts at $500

 
Included in these exciting industry-leading enhancements include:

  • Full prior acts coverage provided for risks with no claims/events
  • Cyber Crime coverage included
  • Privacy Breach Response Costs provided outside the limit for most classes
  • BrandGuard Coverage included
  • Broadest trigger for Business Interruption and Data Restoration losses industrywide

 
Best of all, indications can be provided for almost all classes under 30 million in revenues or 50,000 records using our online submission portal WITHOUT having to complete an application.

No longer do you have to compromise important coverage to get to an affordable rate! Let US Pro start saving your insureds money WHILE we give them the best coverage available today!!

Online submissions. No application required for a quote. $250,000 limit choice. Full prior acts. Dramatic rate reductions. At US Pro, we are America’s Cyber Insurance Experts – find out today.

Want a way to calculate the cost of a Privacy Breach to your Insured?

Posted by on Oct 16, 2015 in Cyber Source | Comments Off on Want a way to calculate the cost of a Privacy Breach to your Insured?

US Pro’s “NEW” Breach Response Calculator

 
What if you could answer the question you are always asked?
The question we are asked more than all other questions. The question you are asked more than all other questions. No one could really answer it before, and understanding the reasons why is what led US Pro to create the industry’s first AND only Breach Response Costs Calculator.

This innovative tool is superbly easy to use and provides an estimated minimal financial impact for any kind of risk class using 3 simple questions. The Minimum Breach Response Costs figure is then immediately calculated and shown. Best of all, it is available only to US Pro customers as a free proprietary tool for increasing your sales success.

What are Minimum Breach Response Costs (BRC)?
BRC are the first party expenses incurred by an Insured as a result of a privacy compromise of third party personal confidential information in their care, custody or control. These include the following expenses:

  • Notification costs incurred to notify affected individuals of a breach of their personal information
    Legal and forensic expenses incurred to determine the cause of a breach and navigate state by state notification laws.
  • Customer support and credit monitoring services provided to affected individuals
  • Crisis Management and Public Relations expenses incurred to mitigate reputation damage or potential economic harm.

Every entity who has a privacy compromise will incur all or some form of these costs, so understanding what the minimal expense impact is for your customer is essential. The Breach Response Calculator was developed to help you determine just what that potential impact is.
 

Be An Expert, Or Use an Expert.

 
Beware of those who do not know what they do not know.

Even though comprehensive Cyber Liability Insurance has been available for about 8 years, the diversity in coverage offered from carrier to carrier, the lack of uniform policy formats or languages, the advent of new programs and carriers who lack experience or understanding, and the constantly changing nature of the exposures and challenges facing commercial Insureds.

These are the main symptoms causing the knowledge deficiency of wholesalers and retailers alike. US Pro asks the question- Are you a Cyber Liability expert? If you answer this question No, then ask yourself “Is your broker one?” The top commandment in the 10 commandments of Cyber Insurance is to “Be An Expert, or Use an Expert”. We are America’s Cyber Insurance Experts- put us to work for you today!!

Contact ksneed@usproins.com today to get your login ID and password and start crunching BRC numbers for your insured’s today!

Finally – A Way to Calculate Cyber Exposure for your Insured

Posted by on Oct 1, 2015 in Cyber Source | Comments Off on Finally – A Way to Calculate Cyber Exposure for your Insured

US Pro’s “NEW” Breach Response Calculator

 
What if you could answer the question you are always asked?
The question we are asked more than all other questions. The question you are asked more than all other questions. No one could really answer it before, and understanding the reasons why is what led US Pro to create the industry’s first AND only Breach Response Costs Calculator.

This innovative tool is superbly easy to use and provides an estimated minimal financial impact for any kind of risk class using 3 simple questions. The Minimum Breach Response Costs figure is then immediately calculated and shown. Best of all, it is available only to US Pro customers as a free proprietary tool for increasing your sales success.
 
What are Minimum Breach Response Costs (BRC)?
BRC are the first party expenses incurred by an Insured as a result of a privacy compromise of third party personal confidential information in their care, custody or control. These include the following expenses:

  • Notification costs incurred to notify affected individuals of a breach of their personal information
  • Legal and forensic expenses incurred to determine the cause of a breach and navigate state by state notification laws.
  • Customer support and credit monitoring services provided to affected individuals
  • Crisis Management and Public Relations expenses incurred to mitigate reputation damage or potential economic harm.

Every entity who has a privacy compromise will incur all or some form of these costs, so understanding what the minimal expense impact is for your customer is essential. The Breach Response Calculator was developed to help you determine just what that potential impact is.
 

Be An Expert, Or Use an Expert.

 
Beware of those who do not know what they do not know.
Even though comprehensive Cyber Liability Insurance has been available for about 8 years, the diversity in coverage offered from carrier to carrier, the lack of uniform policy formats or languages, the advent of new programs and carriers who lack experience or understanding, and the constantly changing nature of the exposures and challenges facing commercial Insureds.

These are the main symptoms causing the knowledge deficiency of wholesalers and retailers alike. US Pro asks the question – Are you a Cyber Liability expert? If you answer this question No, then ask yourself “Is your broker one?” The top commandment in the 10 commandments of Cyber Insurance is to “Be An Expert, or Use an Expert”. We are America’s Cyber Insurance Experts- put us to work for you today!!
 

Contact ksneed@usproins.com today to get your logon ID and password and start crunching BRC numbers for your insured’s today!