E&O Tips

6 Questions to Ask Before Buying a Cyber Insurance Policy

Tabitha L. DeGirolano, RPLU+, CPLP
All insurance agencies need cyber insurance. Why? Agencies hold significant amounts of personally identifiable information (PII), use email heavily, and frequently utilize the internet. Cyber insurance policies often vary significantly from one carrier to another, so it can be difficult for you to choose the coverage that best suits your agency.

Before purchasing cyber insurance for your agency, ask yourself:

 

  1. Does the policy provide for first- and third-party loss of PII?
  2. Is it standalone or combined coverage? It’s not unusual to see some cyber coverage included within other policies. Combined coverage may not be as broad as standalone and may include shared limits. 
  3. Will the policy respond to incidents involving computer fraud, social engineering, and funds transfer fraud? These coverages are often sub-limited. Review the limits carefully to ensure you believe the amount would be sufficient for your needs. Commercial Crime policies often provide these coverages and may be able to offer higher limits. Determine which policy would be the most advantageous to your needs.
  4. How will the carrier respond to ransomware attacks? Some carriers may not be willing to pay the demand.
  5. Does the carrier work with a quality data-breach consulting firm? If there’s a breach, they will be crucial in helping you successfully respond quickly.
  6. Does the carrier offer pre-loss mitigation services? These can include risk management training, guidance on developing an incident response plan, and other useful information at no additional cost.

Need Cyber Insurance? Cybersurance is available to Agents’ E&O policyholders with the Utica National companies. With Cybersurance, you get access to Cyberscout, a leading breach consulting and management firm. Find out more here:

Looking for advice on how to protect yourself from cyber incidents?

QUESTIONS? Please contact E&O Risk Management Specialist/Executive Commercial Lines Underwriter Tabitha DeGirolano, RPLU, at tabitha.degirolano@uticanational.com – she’s ready to help.


This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.

 
 
 
 
 
 
 
 

Tabitha L. DeGirolano, RPLU+, CPLP

E&O Risk Management Specialist Executive Commercial Lines Underwriter Utica National Insurance Group