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"Specialty Insurance Blog" - 5 new articles

  1. Selling an Agency – E&O Insurance
  2. Cyber Theft – Who Pays?
  3. Standalone Tail – A Better Insurance Solution
  4. Cyber Risk Insurance – A Necessary Coverage
  5. Healthcare & Cyber Risk Insurance
  6. More Recent Articles
  7. Search Specialty Insurance Blog
  8. Prior Mailing Archive

Selling an Agency – E&O Insurance

Properly structuring insurance agents/brokers E&O (errors & omissions) insurance coverage is critical when buying or selling an agency. There is no one best E&O coverage structure when an agency transaction takes place, but comprehensive tail coverage is an important consideration in the process. Rather than automatically exercising the extended reporting period (ERP) provision in the E&O policy, a Standalone Tail policy should be considered. A Standalone Tail provides flexibility in terms that is generally not available from an ERP (see our prior post on Tail coverage). Ensuring you are properly covered by your Errors & Omissions (E&O) insurance after an agency sale transaction can be tricky, and both the buyer and the seller will want to ensure there is adequate...
     


Cyber Theft – Who Pays?

A victim of a Cyber Theft lost $327,000 and is proceeding with a lawsuit against their bank. See Krebs on Security (here) for information on the breach, the mechanics the thieves used and the legal arguments that might be used in the suit. Also see here and here for additional information. It will be interesting to see the outcome, but in prior actions victims have not been successful when the cyber thieves gained access to the bank accounts using the victims stolen login credentials. This situation may be complicated by the bank’s actions. Insurance can be an effective protection against Cyber theft, including both traditional crime policies (with the proper coverage extensions) and some Cyber Risk insurance policies. (See prior...
     

Standalone Tail – A Better Insurance Solution

A Standalone Tail insurance policy can be a better solution than exercising an Extended Reporting Period (ERP) provision in a professional liability insurance policy (E&O, D&O, EPL, Cyber). Tail coverage covers claims made against an insured during the period after the original claims made policy has expired for services (for a professional) provided prior to the original policy termination date (see here). Tail coverage is critical in the sale of an operation, such as an insurance agency, and typically is required by a buyer. There is currently an active market for Standalone Tail coverage – unlike a few years ago (see our prior post here, and note the date!). As an example, a Standalone Tail was recently placed to support...
     


Cyber Risk Insurance – A Necessary Coverage

Cyber Risk Insurance (also called Data Breach, Privacy, Network Security insurance) is a necessary insurance coverage for all organizations and most organizations are starting to buy the coverage. As an insurance agent or broker, you should be up to speed and ensuring your customers have (the right) coverage. The confluence of hacker attacks, employee errors, increasing regulation and internet security lapses has created a heightened level of exposure for all organizations, including smaller organizations. We noted an increasing need last year in our post Cyber Risk is Booming (see here, also Who Needs Cyber Coverage). The media is primarily focused on breaches at large organizations, but numerous breaches at smaller organizations go unreported. And many more companies are buying, as...
     

Healthcare & Cyber Risk Insurance

All types of healthcare providers are at increased risk of data breach and should have comprehensive Cyber Risk Insurance. The FBI has issued warnings to the healthcare sector: Cyber actors will likely increase cyber intrusions against healthcare systems--to include medical devices--due to mandatory transition from paper to electronic health records, lax cybersecurity standards, and a higher financial payout for medical records in the black market. (see HealthData Management here) The healthcare industry is not as resilient to cyber intrusions compared to the financial and retail sectors, therefore the possibility of increased cyber intrusions is likely. (see Data Breach Today here) Information is more valuable to cyber criminals: Demand for medical information…remains strong on criminal marketplaces, experts said, partly because it...
     


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