How can a cyber insurance policy protect your business?

Mike Fusco reviews Evolve MGA’s best-in-class cyber insurance policy.

Hi, everyone. I hope you’re doing well. We’ve been talking a lot about cyber insurance; whether you’re an agent internally here at the office or a consumer of our agency, we’ve been providing lots of information about cyber exposures and cyber coverage. I’ve researched a few different policy forms offered out there. Evolve and Evolve MGA does an excellent job of providing coverage and educating the consumer and the agent to understand the insurance protection in their policy.

EVO 4.0 Wording

Instead of a 100-page policy that you have to read through and decipher all the tricky language, Evolve MGA provides the document shared in my video: their EVO 4.0 wording and 4.0 is their most recent up-to-date policy form. And if you read through, it breaks down what their coverage is in layman’s terms. Whether you’re an agent reading to educate yourself on the cyber policy or if you’re a consumer of our agency, the EVO 4.0 Wording document makes sense. I’ve had cases where I’ve sent the EVO 4.0 Wording document to a customer after giving them a quote. In response, I have heard statements such as; “Oh wow, I see what it’s covering.” It makes it understandable, and I like that.

Watch Mike’s YouTube video for the EVO 4.0 Wording document.

I’m reviewing the document as part of this video. You may also download a copy of the “EVO 4.0 Wording’; please look out for a popup below to download the document. Now I want you also to understand not all insuring clauses come with each quote. Depending on the operation, Evolve MGA may not extend some of the insuring provisions to the policyholder. It is essential to review the quote closely.

Examples of some insuring clauses in EVO 4.0

Insuring clause two is crucial, which is your cybercrime coverage. As an example; It covers your funds’ transfer frauds, your theft of funds, and extortion, which is ransomware, to name a few. Although Evolve MGA usually includes section D of insuring clause two, I have seen A, B, C, E, F, G, and H with no coverage. Still, I go back and ask the underwriter what we need to do to provide that coverage, and they might ask for some supplemental information to see what controls the client has in place to eliminate some of these threats, a big one funding transfer fraud.

Insuring clause six – Technology E&O

Okay, so you can go back and ask, “do we have an opportunity to add all sections of insuring clause two on the policy?” Another big one that you’ll notice is insuring clause six, which is Tech E&O. They’re not going to provide Tech E&O unless the customer or the business is in the tech industry because if you’re in educational services, you don’t need Tech E&O, so keep that in mind.

Definitions in EVO 4.0 Wording – a great resource

If you don’t know the definition of language in the policy, you will find all definitions towards the end of the document. I was reading section A, incident response costs, and what the policy will pay for it, and then it says here, “As a direct result of a cyber event first discovered by ‘you.’ Well, what does ‘you,’ mean? Does that mean there’s only one person in the organization that can discover the event?

Read the definitions section.

What you want to do is scroll down to the definitions section, and you will read the definition of ‘you.’ ‘You/your’ means the company, employees, and senior executive officers, so only acting in the normal course of the company’s business operations. So it’s not just you meaning one person; it could be any person in the organization that fits this role with this definition. Again, all the definitions are listed and also organized alphabetically.

A quick pass through EVO 4.0 Insuring Agreements

Evolve’s policy is comprehensive; Insuring Clause one has, as you can see, several sections of insurance. Insuring clause two has all these sections, and it’ll tell you exactly what they pay for under each paragraph. Keep in mind that some of these insuring clauses protect third-party claims, and others are first-party coverage, such as insuring clause three, system damage, and business interruption. That’s direct coverage for the business that suffers the breach or the cybercrime. Okay? I mean, it has income loss as system damage. There’s reputational harm coverage in here, so here it is right here reputational harm. Excellent stuff. Hardware replacement costs. So read through it, I think you’ll get a good understanding. You’ll also start to realize that some of these insuring clauses will show up with other carriers’ coverage policies, but not with all.

Evolve will provide a side-by-side comparison.

Another thing Evolve MGA will do for you, and I found this very helpful, is provide a side-by-side comparison with a competitor. For example, I recently had a customer get a quote from Tech Rug, I never heard of them, but Evolve has all of their forms and all of the other carrier’s forms on file. They know what coverage they offer, so they’ll give you a side-by-side comparison breakdown for your customer to show you what their protection provides and what the competitor is providing, which is fantastic. And in some cases, the competitor may give a couple of better line items of insurance, or maybe a different deductible level, and Evolve MGA will point that out and say, “Hey, this is what your client needs to consider. These are the reasons why we think we’re better, but they will also highlight the benefits of the other insurance policy.”

In closing

Would you please let me know if you have any questions? Would you mind reading through the documents I hyperlinked in addition to watching the video? I’m also going to provide two other documents here. One document is six free cybersecurity risk management services that every customer gets with an Evolve policy, and the other is their product highlights. I will put that at the bottom, too, so let me know if you have questions. I think once you read this, you’re going to get a better understanding of how cyber coverage can help. Take care.

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