Keep posted, keep informed.
Cyber Liability Insurance is still in its infancy, yet most business owners would agree that the coverage is crucial to round out their insurance portfolios. As businesses move toward a completely digital landscape, more and more cyber risks are threatening businesses of all types. While your clients might be sold on the idea of carrying the policy to protect their business and prevent loss, there are some little-known facts about the coverage. Here’s some important features to remind your clients of when selling the policy.
Umbrella & General Liability are not the same as Cyber Liability.
Cyber insurance, being more of a specialty offering, is different from general liability and professional indemnity insurance. General liability policies frequently cover basics like physical damage. If a hack, a virus or even a simple software bug creates a data loss, data breach or server downtime, your general liability policy might not compensate you for your loss and costs. Indeed, many insurers specifically exclude electronic losses from their general policies. Cyber insurance policies, on the other hand, can and frequently do cover these situations, explains eSecurity Planet.
It’s not a one-size-fits-all policy.
As an experienced agent, you know that these policies are still relatively new. For this reason, it’s important for you to be transparent about the exclusions that the policy contains. Not all of the exclusions are going to work for your clients, so if they are missing out on important coverages or limits, be sure to secure those gaps.
There might be some coverage overlaps.
Sometimes, there is some overlap. Data losses as a result of physical damage to or theft of devices could be covered by some general policies. Manufacturer warranties also sometimes cover physical damage — even accidents. In limited situations, a data breach or intrusion as a result of negligence may even be covered by certain professional errors and omissions policies, explains the article.
As the agent, you’ll have to comb through their existing policies and see if there are redundancies that can be eliminated.
It covers more than just a breach.
There are so many elements that are included in a breach recovery, and the cyber liability insurance policy should reflect that. Remind your clients that this policy covers public relations, forensic investigation, regulatory costs, and more.
Insurance isn’t a replacement for sound privacy practices.
Just because your clients are equipped with comprehensive cyber coverage doesn’t mean they can slack in the security department. In fact, you should conduct an investigation on their current cyber privacy practices prior to providing them with coverage, including their data management practices, password security, data backup and more.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.