Specialty Insurance Blog

Bank Account Theft & Cyber Insurance

Another example of a bank account takeover triggers the question: Did they have Cyber Risk Insurance? It appears not. Brian Krebs of Krebs on Security reported that another small business is the victim of a bank account takeover (see here). The cyber thieves initiated three wire transfers to the Ukraine totaling approximately $223,000, and the victim is seeking to hold the bank responsible. No mention of cyber risk insurance. As a follow-up to a prior post on bank account takeovers (see here), an escrow firm in Missouri lost its case for recovery of funds from its bank. It lost $440,000 as a result of bank account takeover and cyber heist (report here, prior post here). Why no mention of cyber... Read more →

Surplus Lines Insurance – Best Practices

Placing business in the excess & surplus lines insurance market (E&S insurance) has many of the same characteristics as the standard insurance market, but also has a few key differences. The most significant difference is the use of wholesale brokers. Successfully utilizing the E&S market through a wholesale broker with the proper licensing and expertise will smooth the process and enhance the retail producer’s business prospects. These best practices are suggested: Communicate, don’t assume – When in doubt, communicate expectations Document (& Document & Document) – You have heard this before Time & information – The underwriter needs time & information to properly assess risk Check the coverage – Is it what your customer expects? Bind in writing – Always... Read more →

Insurance Agents E&O – Custom Coverage

Some insurance agents and brokers do not realize that their insurance agents E&O policy does not cover all of their services. Insurance agents are always looking for an edge, and differentiation strategies can lead to a variety of value added services (see our prior post). Some of these value added services may not fit within the standard definition of covered services in an insurance agents/brokers E&O policy. An example: An insurance agency specialized in a specific class of business, and also provided value added services to its clients including risk management, compliance and training services. The insurance agency requested insurance agents E&O coverage without realizing that there was a shortfall in the standard coverage. The value added services did not... Read more →

Cyber Risk Insurance Report

The Insurance Information Institute (III) has released a white paper on the growing cyber threat and implications for insurance (see here). Key points: The cyber threat is growing “larger companies… tend to have a greater exposure to cyber risk” More companies are buying cyber risk insurance coverage, but the majority still do not. Legislation & regulation will likely increase, increasing the burden on companies to protect information Our perspective: Cyber attacks are increasing, and the attacks are getting more sophisticated. Small businesses are prime targets, and we are continually surprised at the number of small companies that have actually had some sort of breach Any company with confidential data should be buying Cyber Risk Insurance While many companies buy Cyber... Read more →