Most lines of insurance are something you should have, yet in business, some coverages are something you must have to survive. Workers’ compensation, unemployment, and disability insurance are all required by law. Then there are lines that are foundational for businesses; general liability and professional liability insurances. But what about Cyber Insurance?
At first, cyber insurance was previously considered an optional investment for companies with minimal sensitive data. Today, any business that uses technology or collects data is at risk of a cyberattack, and therefore cyber insurance should not be considered optional.
10.5 Trillion. That’s the projected annual cost of cybercrime by 2025
As your clients focus on growing, generating revenue, and managing a remote workforce, don’t let them overlook a critical component to long-term success – a cybersecurity risk management solution complete with cyber insurance.
Secure Your Clients Moving into the New Year
Take Time for Business Planning
Explore, research, and understand your book of business. Your clients need peace of mind knowing that they have an agent doing everything they can to reduce cyber risk.
Influence Awareness of the Changing Cyber Landscape
Bring insight and awareness to your clients about the new cybersecurity “must-haves” to manage their industry-specific risk and inform their ideal comprehensive coverage.
It may seem evident that healthcare and financial institutions are hit the hardest by cyber attacks. But there are also industries such as manufacturing that rely on highly specific software that is difficult to patch, making them vulnerable to cyber-attacks.
Contact your account manager or our team at FifthWall if you need industry-specific claims scenarios to guide your conversations.
Recommend a Full Risk Management Solution
You won’t do this alone. Align with trusted third-party resources that offer breach prevention and response tools to equip your clients to avoid risk and minimize impact in the event of a security incident.
There are at least “Five IT Best Practices” to address to increase your chance of obtaining an adequate insurance policy with the best rates for your clients.
It is vital for these practices to be in place at the time of application. If carriers only receive a resolve from your client to implement MFA, the carriers know the risk that your client’s network may have already been breached, even if the signs may not show for months.
Be Willing to Adjust
This rings especially true at renewal, where rates, coverages, and underwriting practices have rapidly evolved within the past 12 months and will continue to do so. The more your clients have insight and awareness–the more they take action with optimizing security controls–the more likely they will find success in placing risks as carriers shift their goalposts. We think this is so important, that we’re linking to this article again for you to read next. -> Five IT Best Practices
As your cyber risk partners, we return to the market and navigate our carrier network at each renewal to ensure your clients have a competitive premium for the right coverage.
For new businesses, have a timeline planned as to when your client will apply and bind. Quotes will often expire in either 30 days or 60 days, and after the deadline, refreshed quotes may have already adjusted with new market rates.
Whether you are placing cyber insurance for the first time or a renewal for a client, help them be prepared. A team (legal, compliance, HR) will often be needed to pull the required information together.
Start collecting data and inquiring for applications 60 – 75 days before a new policy’s desired effective date or renewal’s expiry date, given that best security practices are already in place. If not, allot more time to implement those first.
Remember, cyber coverage is not a niche. Cybercrime does not discriminate. Just as a race car driver would not enter the next competition without life insurance, don’t let your clients operate their business without protecting against cybercriminals.