A Second Chance
Is the man who sells more wiser? Take the test!
Cyber Insurance for commercial, municipal, and nonprofit entities, despite its surge in awareness and availability, remains amazingly misunderstood and as a result, uninsured or underinsured, by insurance agencies across America.
We ran this article a few months ago, and wanted to again give our customers a chance at testing their knowledge of Cyber Insurance. Some of you admittedly knew none of the answers and others gave it their best shot. Nobody answered more than 2 correctly. How much do you think you really know?
Agents have become more familiar with the coverage, but familiarity can breed mediocracy. Most carriers themselves are lackluster and tunnel-visioned in their training approach, never arming the local agent with knowledge that is useful to the sales transaction. Still, Cyber Insurance is quoted more, sold more, and claim activity is rising. So are you, or your agency, one of those who have become wiser in coverage and better at selling this product?
Before you answer, a quick “test” of your intimate knowledge of Cyber Insurance is in order. The following five (5) questions will help measure your understanding of the coverage, its exposures, and what it means for your customer. So sharpen your pencil and give yourself 5 minutes to answer (any longer and you cannot discuss these confidently to a client):
- What item at risk is at the center of a Cyber Liability Insurance Program?
- What is the greatest exposure/cause of a Cyber Insurance claim/loss?
- What is the most important coverage component of a Cyber Insurance policy?
- Name 3 types of privacy breaches caused by events other than through a network breach.
- What potential consequence of a Cyber claim is the most important to mitigate, or avoid outright?
Are you practicing what you preach?
So how do you think you did on our quick quiz? If you really want to know how much you know, email me your answers to firstname.lastname@example.org for the answers. You will likely be quite surprised by one or even all of the answers.
No matter how you fared, the sales of Cyber Insurance should be a mandatory practice for every firm. The public awareness and weariness of the problem has created huge liability problems for all types of entities. A Cyber claim, and regulatory fine(s), is far more expensive than a fire loss, or a liability claim. Your uninsured client may countersue you for not offering or providing this coverage. A potentially large E&O claim is at stake every day.
The scariest part of the story now unfolds. Many insurance agencies across America, including hundreds of our own customers, do not currently purchase Cyber Insurance. Yet, America’s independent insurance agency network is a virtual portal to a pot of gold for the wise Cyber thief. Identity theft is successful when the personal information of a large group of people can be accessed.
An insurance agency keeps the personal information, and may also have the protected health information, of every Insured’s employees. A midsize agency may insure 5,000 commercial policyholders, which means those policyholders’ employees information are also at risk. This multiplies to thousands of potential records at risk.
The final question is “Do you carry Cyber Insurance for your own agency?” For some of you, the answer is Yes. For many others, it remains No, despite what you already know. Cyber Liability Insurance is not just protection- it is the lifeblood to the health of your business existence. One event could shut your doors for good. Today, a data breach is a killer to business reputation.
For an insurance agency, that could be a mountain you cannot climb.
Get your coverage today, and send all your Cyber submissions to us. Choosing the right Cyber program is not easy. What you think you know might not be what is true. Finding an expert is important. At US Pro, you have a partner you can trust.
Email us today at email@example.com for superior quote service.
US Pro- Cyber, D&O, EPLI, Crime, Professional Liability, Media, Tech, Environmental, and CNA Small Business BOP/Auto/WC/Umbrella. We ARE everything Specialty Lines.