7 Things to Know When Comparing Cyber Quotes
Staffing and PEO Cyber Insurance Considerations
Cyber liability is an emerging topic across all industries and rightfully so. There isn’t a single person or company that’s immune to a cyber-attack. If you’re a business and you’re online, you’re exposed! If you haven’t already, you should be looking into quotes or pricing indications for coverage. When comparing quotes from competing insurers, here’s what you’ll need to know:
1. Limits and Deductibles:
- It’s important to determine your liability and choose limits that align with your exposures as a company.
- In order to compare quotes “apples to apples” – be sure all quotes have the same limits and deductibles. If that’s not possible, obviously higher limits and lower deductibles are favorable, as long as the pricing makes sense.
2. Admitted vs. Non-Admitted Insurers:
- One of the benefits of working with an admitted insurer is the state has the responsibility to pay your claims, up to state-specified limits, in the event of the company's insolvency. Non-admitted insurers have more flexibility, as they don't have to submit their rates to the individual states for review. Consequently, non-admitted insurers can insure higher-risk events.
3. Primary vs. Excess Coverage:
• In the event that multiple policies are triggered by the same loss, a primary policy would pay before another applicable policy (crime, general liability, etc.).
4. Policy Aggregate:
- This is significant in the event of a claim. For example, with a large claim, notification costs could exceed your aggregate limit (policy will pay up to $1M maximum per year, regardless of the number of claims), and you’d have nothing left for the year.
- Some insurers don’t have a policy aggregate limit; rather each insuring clause is its own tower of coverage. This is the favorable option.
5. Prior Acts Coverage vs. Retroactive Date:
- Full prior acts coverage is significant because regardless of how far in the past a claim took place, the claim will be covered (as long as it’s made against you during the current policy period). A retroactive date eliminates coverage for claims prior to a specified date (retroactive date), even if the claim is made during the policy period.
6. Defense Costs:
• Determine if the amounts paid by the insurer to defend you against a claim reduce the limits of the policy.
7. 24-Hour Hotline or Panel of Experts:
- Check to see if the quotes offer 24-hour claims assistance or a panel of experts you can call on in the event of a potential loss.
- Cyber E-Book
- Staffing Companies and Cyber Exposures
- Hand It Over: The Scary Truth About Social Engineering
- Cyber Claims Webcast
- Cyber & Privacy Liability: Part 1 Webcast
- Cyber & Privacy Liability: Part 2 Webcast
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