Schinnerer Responds to Growing Threats to Business Community

PRODUCT: Cyber protection package for small, midsize and large organizations

COMPANY: Indemnity Insurance Company of North America, a Chubb company

BEST RATING: A++ (Superior)

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: Compared to other nations, the U.S. ranks highest in cybercrime cost at an annual average of $15.4 million per company, according to the Ponemon Institute.

Cyberattacks pose a growing threat to the entire business community—and small and midsize businesses are not immune. “In fact, they often have fewer resources to manage the potential risks,” says Matt Kletzli, Schinnerer senior vice president and management liability practice leader. As a result, more companies are seeking financial protection through cyber liability coverage.

Enter: Schinnerer’s cyber protection package.

Schinnerer created its first cyber solution with a simple application policy and easy-to-understand language. “We designed this product with Main Street America in mind,” Kletzli says. “Many customers are uncomfortable in the cyber arena because it is extremely complicated. So we built this product from the perspective of the everyday customer, free of any techy language.”

One major advantage of the new package is a proprietary assessment tool that enables Schinnerer to simplify the procurement process, without diluting the coverage. “The product is resonating with brokers because we have simplified the process,” Kletzli explains. “We built an online portal that allows brokers to answer eight general—and not IT-specific—underwriting questions.” If customers qualify, they receive a quote within minutes.

Another big advantage of the product is a breach rectification suite that helps companies navigate through a cyberattack. “Technically, this acts as a risk management product,” Kletzli says. “Through the breach rectification bundle, customers work directly with a breach response team that provides expert legal services and technical support when a data security breach is identified.”

If clients suspect a breach, they call a 24-hour hotline. Within four business hours, they connect with a data breach coach who helps identify and manage the crisis. “Help for something this complicated is just a phone call away,” Kletzli says.

UNDERWRITING: Coverage options include:

• Digital crime, which protects a company from various types of digital crime, including electronic transfer of funds, telephone toll fraud, cyber extortion and deceptive transfer.
• Breach liability, which protects against certain lawsuits or demands related to privacy liability, website media liability and regulatory compliance. Broad liability coverage applies to suits or demands related to cyber that result in a loss to policyholder’s company, including privacy liability, website media liability, regulatory or payment card industry.
• Breach rectification, designed to get policyholder’s business back on track quickly, while protecting brand and reputation. The coverage suite includes a data breach team, business interruption and digital asset loss.

MINIMUM PREMIUM: $750. Maximum liability limit is $10 million.

TARGET: The package is designed for small to midsize businesses, but is also scalable to meet the needs of larger organizations.

COVERAGE TERRITORY: All 50 U.S. states.

CONTACT: Matt Kletzli, senior vice president and management liability practice leader; Victor O. Schinnerer & Company, Inc., Two Wisconsin Circle, Suite 1100, Chevy Chase, MD 20815; 301-961-9800.

Ronimarie Acord is an IA contributor.