Niche Program: Cyber

The cyber insurance market is both a blessing and a curse. The blessing is it is truly a growth market and one where customers absolutely need the services of a trusted advisor. The curse is the difficulty of framing/making the sale, many new E&O pitfalls, and the effort required to become a trusted advisor.

ISO has the defining position and coverage offerings in most lines of insurance BUT THAT IS NOT THE CASE with cyber insurance. E&S insurers play a leading role in the development of cyber coverage. As a result, there is huge variation in program structure and terminology. This makes meaningful policy comparison almost impossible. To be successful a producer must systematically identify a client's cyber exposures and find the corresponding coverage.

Cyber Coverage Complexity: Analyzing cyber exposures takes dramatically different skills than are required in the traditional P&C insurance space, which is why so many producers struggle in this area. Burand Insurance Education has divided cyber coverage into ten basic aspects of cyber exposure and coverage.

 

We have also developed first party, third party, and outside expense considerations. Then we looked at the three kinds of defense: cyber, data, and network. Ten basic aspects combined with at least three types of parties' expenses and at least three types of defense tells the story of cyber complexity.

Rather than trying to tackle all cyber issues at once, our program is based on learning what the exposures are in each category, developing a strategy for each category, and then identifying whether proprietary policies provide coverage in those areas. Completed on the basic building blocks we have identified, we make cyber actually doable in the real world.

Communicate to Close the Sale: Additionally, as new as cyber coverage is to agencies, it is even more confusing to insureds. Therefore, a key element to learning and selling cyber is actually making the sale. Cyber is proving to be an extraordinarily difficult coverage to sell for many reasons including the difficulty insureds have understanding their exposures, understanding the coverages, and understanding whether the coverages address their exposures. Therefore, a crucial element to cyber sales is learning how to talk to clients regarding cyber exposures and sales. This key part is taught throughout our program.

Cyber Classes:

  • How to begin the discussion around cyber

  • What is “Breach”?

  • Security Breach Expense

  • Security Breach Liability

  • Replacement/Restoration of Electronic Data

  • Business Income vs Extra Expense specific to Cyber

  • Extortion

  • Public Relations Expense

  • Website/Social Media Publishing Expense

  • Programming E&O

  • First Party

  • Third Party

  • Reputational Risk

  • What Cyber Related Expenses Need to be Discussed?

  • Cyber Risk Management