Not all Cyber Insurance Policies are created equally.  With rates in commercial insurance having declined year after year, retailers are under pressure to write more business and Cyber Insurance is a good place to start.  Most of their clients, if not all, have this exposure and traditionally did not buy coverage.  The trouble is that most standard markets that retailers use have a Cyber Policy, unfortunately it is often not up to speed with what is available in the market.  Retail brokers can be doing themselves and their clients a disservice by placing this coverage with their standard markets.

Standard markets follow trends and it takes them a long time to update their policy wordings and get the policy out into the field of non-specialized underwriters.  By the time they launch a new Cyber policy it is out of date with what is available in the market.  Additionally many of the standard markets do not have specialized claims adjusters with a history of administering Cyber claims.  These policies often lack add on services that come with many policies.

Retailers and their clients are better off when the agent engages a specialist wholesale broker or MGA that has access to many specialist cyber markets.  The specialist can help sell the coverage by explaining all the ins and outs of the coverage and exposures.  At the outset a specialist will know the top markets to go to for a specific risk that the retailer might not have access to or might not have a good working relationship with.  This often means even if they had access to these markets they may not know what to ask for or how to get the best deal.  It is even less likely that they will have a relationship with the claims department at that market, which will be critical when a client has a breach.  Additionally a specialist should have relationships with all sorts of vendors in this space to help aid with risk management services .  Lastly a specialist in this area should be providing bench marking services to show the client what their exposure looks like to help determine appropriate limits to carry.

Do you know the top markets for a large retailer vs. a small hospital, versus a utility provider?  What about an Cyber Risks with a BI/PD exposure like Bio Medical firms that manufacture implanted devices?  What about retail risks that are not PCI compliant?  Do you know how to help clients manage their cyber risk in contracts with their clients?

By trying to place this type of risk directly with a standard market, retailers are often selling their client an inferior product as far as coverage and putting their own E&O on the line should their be a breach that is only partially covered.  Don’t shortchange yourself and your client by only approaching standard markets.  Use a Cyber specialist like ProWriters where we offer up to 15% commission on new business, we will provide benchmarking services, and will take the majority of the work off of your desk while opening you up to many specialist markets to get your clients the right cyber policy.

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