ProWriters Covers Cyber Spectrum from Startups to Multibillion-Dollar Businesses

PRODUCT: Cyber insurance

COMPANY: AIG, XL Catlin, Hiscox, Chubb and CFC, among others

BEST RATING: Varies by carrier and product, but typically A- (Excellent) or better

AVAILABILITY: Coverage is available through approved agents and brokers.

FOCUS: Every business has some type of cyber exposure. Whether it’s a targeted hack, an old security password or a lost laptop, organizations face constant cyber risk. And no matter the size of the business, the exposure is complex and changing every day.

To protect businesses from these exposures, ProWriters offers cyber insurance for all companies—big and small.

“The cyber insurance space continues to change rapidly,” says Brian Thornton, president of ProWriters. “Every day, we see companies that have inadequate cyber insurance coverage—from improper limits and sublimits to exclusions that should have been negotiated out of their policy. It’s very important to look at cyber coverage in conjunction with errors & omissions and directors & officers coverages to ensure there are no gaps in coverage.”

ProWriters offers a mix of professional and management liability products, with a significant focus on cyber insurance. “Most insurance brokers have access to cyber insurance products, but access is not the same as expertise,” Thornton says.

According to Thornton, a good policy should provide flexible coverage for the costs of responding to a breach. “It should also cover the costs to defend and resolve claims for statutory violations, negligence, regulatory investigations and a breach of a contract,” he adds.

UNDERWRITING: ProWriters customizes coverage for each client based on exposure and specific coverage desires. By considering size, industry, data and security profile, ProWriters provides a list of questions in addition to the application.

“We provide benchmarking services to show clients what their potential exposure looks like if they have a breach,” Thornton explains. “This helps pinpoint specific coverage needs, limit requirements and sublimit needs.”

Limits extend to $100 million. First-party coverages include a breach coach, IT forensics, customer notification, credit monitoring and repair, public relations, cyber extortion, cyber business interruption, network asset damage and crime/social engineering.

Third-party coverages include defense coverage; indemnity coverage; breach of contract coverage; regulatory coverage for defense of investigations, fines and penalties; PCI fines, penalties and assessments; cyber terrorism; and media coverage.

Available retentions, which range from $1,000 to $500,000, are scaled based on revenues. Companies can add additional coverage modules, including multimedia liability, network asset damage, cyber business interruption and cyber extortion.

Coverage is available for regulatory actions, including Federal Trade Commission investigations, as is coverage for civil penalties where allowed, and compensatory awards such as consumer redress funds.

MINIMUM PREMIUM: $500 for businesses with less than $100 million in revenues; $10,000 for businesses with more.

TARGET: Hospitals, retailers and professional service companies with more than $100 million in revenues, up to $100 billion. ProWriters also offers an admitted program for businesses with less than $100 million in revenues.

COVERAGE TERRITORY: All 50 U.S. states.

CONTACT: Brian Thornton, president; ProWriters, 41 Leopard Road, Suite 301, Paoli, PA 19301; 484-321-2335.

Ronimarie Acord is an IA contributor.