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"Specialty Insurance Blog" - 5 new articles

  1. Insurance Agents & Cyber Risk Insurance
  2. Professional Liability Insurance – Claim Reporting Reminder
  3. Small Businesses Are Targets of Cyber Attacks
  4. Insurance Agents/Brokers E&O – Claims from Claims
  5. Employee Errors, Expectations & Cyber Risk
  6. Search Specialty Insurance Blog
  7. Prior Mailing Archive

Insurance Agents & Cyber Risk Insurance

All insurance agencies and brokers should carry Cyber Risk Insurance to protect themselves from data breach exposure and to demonstrate good risk management for clients, yet some insurance agencies do not purchase the coverage. Insurance agencies have client data and premium funds, and need to take risk management and insurance protection steps to mitigate the exposure. A recent PropertyCasualty360 article (see here) and our prior post noted that small businesses are increasingly targeted by hackers. And insurance agents are repositories of all types of personal and confidential information, including both financial and healthcare information. Financial and healthcare information are key targets for cyber hackers. A recent Insurance Journal article (see here) outlines some steps agencies can take, including: Education –...
     

Professional Liability Insurance – Claim Reporting Reminder

We have commented on professional liability insurance (E&O, D&O, EPL, Cyber Risk) claim reporting a number of times previously (see here, here and here for a few), but the subject requires continuous discussion in order to protect clients. We continue to recommend erring on the side of early reporting, but it is not always so simple. A post on Professional Liability Matters, entitled Malpractice: Failure to Report Client’s Claim, discusses a unique (and interesting) claim reporting situation. However, there is also general reminder on reporting: There is no upside to failing to report a claim. You’ve been warned of the consequences facing professionals who take a wait and see approach or apply self-help measures before reporting. In some cases the...
     

Small Businesses Are Targets of Cyber Attacks

Cyber attacks against small businesses are on the rise (see prior post), yet many small businesses still do not buy Cyber Risk insurance. Attacks and breaches against small and medium sized businesses are generally not reported. For every attack against a large organization outlined in the media, there are hundreds of other attacks against smaller businesses which go unreported. It is hard to develop accurate numbers on breaches involving small businesses because so many are unreported, but estimates are available. A PropertyCasualty360 article (see here) estimates that 62% of breach victims are small to mid-size businesses. Considering that small businesses tend to have lower numbers of records, this is a significant percentage. And a Fox21News report (see here) estimates that...
     

Insurance Agents/Brokers E&O – Claims from Claims

Insurance agents/brokers E&O (errors & omissions or professional liability) claims often result from a customer’s claim being denied by an insurer. The denial can occur for a variety of factors including late reporting and coverage. Not only is it important that the correct coverage be placed for a customer, but it is also critical that the claim be reported properly when received. One example: An agency received a copy of a lawsuit that had been served on a customer, and the lawsuit required that an answer be filed within a set short period of time. The agency sent the papers to the insurer and assumed that they had been received. No follow-up occurred to determine if the insurer had appointed...
     

Employee Errors, Expectations & Cyber Risk

Cyber risk losses, primarily breaches, come from hackers & employee errors (or both), and both impact Cyber Risk Insurance losses. Good IT risk management is critical to protecting an organization, but one practitioner does not include unrealistic expectations of employees as a primary component of IT risk management. Employee errors account for a bit less than 50% of Cyber Risk losses, although the estimates vary depending on the criteria for defining employee errors. The typical breach involving an employee error is a lost laptop containing personal information. But employee error can also involve the increasingly common phishing and subsequent hack attack – involving both employee error (the click) and a hack attack (see here & here). An experienced IT security...
     

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