Have you been writing Cyber Insurance for your customers for some time? Or fairly new? Have you been packaging them into the BOP? Writing it with standard carriers? Working in online programs offered by carriers and MGA’s?
If this is you, then you are in a need of a Cyber Tune Up.
Just what is a “Cyber Tune Up”. Each year, exposures to new risks, changes in language and coverage, new regulations, and a host of other external factors combine to require an annual review of the coverage.
However, these times are even trickier, as agents and brokers are now being targeted for E&O claims as a result of their Cyber expertise, and more so, their lack thereof. Are you confident that you have offered the best coverage available to your client? Can you be sure that any gaps in your coverage are not customarily available with other carriers, including ones you may have quoted but not sold?
To be sure that your customer’s current policy is the right policy for them, be sure to consider these important areas of coverage:
Regulatory Liability
Has the carrier confirmed that they do have coverage for GDPR claims under the regulatory liability coverage part?
Cyber Crime
Does the policy include coverage for phishing attack loss, both first-party involuntary and voluntary parting, and third-party voluntary parting coverages? What are those limits?
Business Interruption and Data Restoration
Is coverage triggered only by a security breach, or is any system interruption a trigger?
Dependent Business Interruption Coverage
If you outsource your systems and data, if your provider has an interruption that forces you into an interruption, will the policy respond?
Privacy Breach
Just what is a privacy breach and does it include failure to disclose of a privacy breach in a required manner, or failure to destroy private information within a required time frame?
Definitions/Exclusions
Are you familiar with all of the definitions that pertain to coverage? Often, coverage gaps and coverage enhancement are buried within the language itself, rather than as a coverage part. The same goes for the Exclusions. In Cyber, a policy exclusion is usually not something that would have triggered under a coverage part anyways.
The truth is that you have due diligence to know what it is you are selling to your clients. Cyber Liability Insurance is really a digital assets package policy, and it should be viewed and sold as such.
USPro
