For Christ's Crown & Covenant | Wholesale Broker | Tech E&O | IP Insurance | Cyber Programs | #BasedBroker
Joshua Motta had some interesting insight on a post I made about unlimited reinstatement of limits. I wanted to share something really cool that we're able to do with Coalition, Inc. that solves a huge pain point for insureds. Coalition is one of the only markets that frequently writes $500k sublimits for funds transfer fraud cover when requested. $500k is a lot better than $250k in most cyber policies, but insureds often want even more, especially if they pay very large invoices. Here's what we're able to do with Coalition that allows insureds to get seamless access to $1.5M in funds transfer fraud coverage with Coalition: We quote the cyber policy with Coalition with two special requests. First, we request the $500k funds transfer fraud sublimit. Second, we request a primary non-contributory endorsement. This endorsement prevents us from running into other insurance challenges. Once we have the cyber quote with those two endorsements, we go to Coalition's executive risk team and quote stand alone Crime. We either strip the crime policy completely down to funds transfer fraud for a reduced premium or the insured just purchases the stand alone Crime as is if that's what they'd do anyways. We get a quote with the stand alone Crime at a $1m limit with a $500k retention. The language in the crime policy does not specify where losses have to come from in order to satisfy the self insured retention. As long as the funds transfer fraud loss meets both the cyber policy's definition of funds transfer fraud loss as well as the Crime's definition of funds transfer fraud loss then it's a covered claim on both policies AND the losses paid out by the cyber policy (siting primary) will satisfy the Crime's SIR. You read that right... If you had a covered $1.5m funds transfer loss this is what would happen: 1. The insured would satisfy their cyber policy SIR. 2. The cyber policy would pay out $500k. 3. The Crime policy would have its SIR satisfied by step 1 and 2 and cover the remaining losses up to $1m. With FTF frequency and severity at scary highs, this is the kind of solution that wins accounts! Shout out to Travis Kroger for being the brains behind this.
Jose Ruiz
2mo
Applicant: Hi! I’d like $1.5M of cyber crime please! Broker: Sure! How much revenue do you generate per year? Applicant: $100,000 bucks per year baybeeee!!!!
John Lanni
2mo
The definition of FTF on the Coalition Cyber policy is substantially different than the one on their crime policy. In a very material way to an insured.
David Perkins
2mo
After posting this.... That will be the last time they do that for you 😜
This is the kind of stuff I'm here for 🤯 - I love learning things like this. More please.
Chris Peabody
2mo
Ha! I’ve used this pic when I share how agencies are describing their agency billing process to me.
Jonathan Lugo
2mo
Ingenious!
Gage M.
2mo
Love it!!
Nicole N.
2mo
Great post thank you
Senior Broker at U.S. Risk Insurance Group
2moOr…hear me out…write a monoline crime policy with a market that can consider even higher limits of social engineering/funds transfer fraud where it belongs. They underwrite the exposure (Imagine that!), but we have seen $5M in limits offered when an account qualifies. I’m a purist when it comes to this coverage. This is a crime exposure to a large degree. Many of these losses have nothing to do with cyber, at least as it relates to the insured. At most a spoofed email address in many cases. By all means we take the eCrime coverage on cyber policies. But it always seems a bit like putting pineapple on pizza to me.