The insurance industry is seeing an increased interest in coverages related to cyber liability. Risk management and insurance professionals are now seeing an appetite for Cyber Crime coverage that is separate from traditional crime insurance programs. Clients are now asking for broader extortion coverage like business income and extra expense. Because data restoration costs are also on people’s minds, the marketplace must remain nimble in response to cyber liability
Here are five major takeaways from our PROfocus Cyber Risk course for insurance and risk professionals working with cyber liability.
Cyber Crime is a rapidly evolving threat. Professionals should make it a habit to periodically review the coverage to make sure the insured’s exposures are covered adequately.
Commercial crime policies may address some Cyber Crime exposures faced by our insureds. However, insurance professionals must understand the insured’s exposure and provide them with coverage options appropriate for them.
Policy wording matters. Even if the wording is sufficient at binding, events can occur that change the threat landscape. Therefore, insurance and risk management professionals must be aware of how policy wording will affect insureds and the exposures they face.
Cyber Crime is a new exposure. Carriers have not settled upon a common language yet, presenting challenges for agents and their insureds when comparing policy forms.
Cyber Extortion, specifically ransomware, has grown significantly in the last four years. Ransomware can affect insureds from nearly any industry regardless of if they store sensitive data or conduct business over the internet. It’s vital to educate insureds on the exposures they face and the coverage available to protect them.
A few years ago, ransomware was not a significant concern. As Cyber Crimes evolves and bad actors continue to adapt, risk and insurance professionals must also persevere. To learn more about Cyber exposures and the most current coverage options available, register for an upcoming Cyber PROfocus course.
Are you a dues-paid designee of The National Alliance for Insurance Education & Research? Get $200 off PROfocus courses!
The PROFocus Series administered by the National Alliance offers professionals in all areas of the insurance and risk management industry the ability to build a professional specialty within Cyber, Contractors, and Environmental Strategy.
These industry niche courses bring innovative approaches to insurance programs. The PROfocus Series helps insurance and risk professionals remain abreast of marketplace trends so they can provide coverage solutions for unique and emerging client exposures.