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Five Reasons to Buy Cyber

Making the case for cyber insurance can be tough even if it’s clear that nearly all companies would benefit from it. So to help your conversations, CFC has put together the top five reasons to buy cyber.

Here are the top five reasons every business should have a cyber insurance policy.

Cyber security and incident response services come free
Cyber insurance doesn’t just cover financial loss when an incident occurs. A good policy offers proactive protection to stop attacks from happening in the first place, and reactive support to respond efficiently and effectively when they do occur.

From the moment a CFC cyber policy is bound, their global team of cyber experts works around the clock to detect and alert customers to cyber threats targeting their business. If they discover a cyber security issue, their team notifies the impacted business through their app, Response, and takes steps to remediate the threat before it escalates.

The value these services offer to small businesses in particular might just be the greatest benefit a cyber policy can provide.

Cybercrime is growing rapidly
Our increasing reliance on technology and the internet is exposing any business that uses a computer to a world cybercriminals—who work around the clock to identify vulnerabilities and launch attacks. You’ve likely heard of ransomware, but social engineering scams are also on the rise, leading to significant losses for companies of all types.

At the forefront of protecting against this new wave of crime, cybercrime provides invaluable cover for a wide range of electronic perils, from wire transfer fraud to ransomware.

System downtime is missed by standard business interruption insurance
When computer systems are brought down, a traditional business interruption policy is unlikely to respond. Considering how almost all businesses rely on technology to some extent, this can result in significant financial loss the business has to bear alone.

Cyber insurance can provide cover for loss of income and extra expenses associated with a cyber event, including legal fees, the cost of remediating the incident, the hiring of expert teams, reputational harm and so on.

Your data is not covered
Data is one of today’s most important business assets, often worth many times more than the equipment it’s stored upon. Yet business owners are often unaware that a standard property policy would not respond if data is damaged, lost or destroyed.

Taking out a cyber policy is a great way to get comprehensive cover for data restoration and even re-creation in the event of a loss.

Complying with breach notification laws cost time and money
Breach notification laws are now commonplace across many territories, and require businesses that fail to protect personal data to notify affected individuals or risk hefty fines and penalties. Australia’s Notifiable Data Breaches Act, Canada’s Digital Privacy Act, Europe’s General Data Protection Regulation, and numerous US state laws make it a legal obligation to notify, and there is also a growing trend towards voluntary notification in order to protect your brand and reputation.

Cyber policies can provide cover for the costs associated with providing a breach notice even if it’s not legally required, and can also cover associated regulatory fines and penalties.

Source: www.cfcunderwriting.com


Technology, Media and IP trends for 2024

In such a fast-changing world of technology innovation, writers’ strikes and intellectual property (IP) clashes, it can be difficult to see what’s coming next. To help you prepare, CFC sat down with their technology, media and IP experts.

Here are the top five trends they say are shaping 2024 and beyond.

Stabilization for the digital assets sector
In recent years, the digital assets sector has experienced fads from the sudden rise and fall of NFTs to the collapse of cryptocurrency exchange FTX. This has created intense cynicism, consumer interest and scams across the market.

In 2024, we expect this trend to die down, as regulators increasingly focus on digital assets, tightening the market and encouraging greater consumer protection. For example, the UK’s FCA is adopting new, stringent rules in marketing crypto assets, motivating businesses to increasingly integrate new technologies into their ways of working—as well as develop technology themselves.

Increased IP litigation in relation to AI training models
Advancements in AI will continue to pose challenges for IP ownership. With today’s AI models collecting billions of data points from across the internet—often with little regard for permissions—there remains more questions than answers when it comes to how IP law will apply to questions of IP ownership. We can usually expect the unexpected when applying established law to modern technology not envisaged at the time the law was developed.

Additionally, it’s still unclear who owns the rights to AI-generated works. Multiple parties have a legitimate claim, and companies in the creative industries are specifically urging their legal teams to chase down instances where their IP is being infringed by AI models. In 2023, claims in this space came thick and fast—from Getty Images claiming millions of its images were copied from its data base without permission to a group of US authors suing Open AI—and we expect that trend to strengthen in 2024.

An influx of content following the end of the Hollywood strikes
Numerous TV shows and film productions ground to a halt due to the 2023 writers’ strike, with the increasing use of AI a key topic of contention. Expect this to have a series of knock-on effects for actors, production companies and adjacent sub-sectors, as AI innovations continue to displace roles on the one hand, and create valuable efficiencies on the other.

With the end of the writer’s strike we can expect an influx of those working in the creative sector such as writers, videographers, film and tv producers to recommence trading. We’re likely to see post-production bottlenecks as companies race to get productions slated, as the industry attempts to right itself after what has been an uncertain period.

Accelerated demand for brand licensing deals
The global brand licensing market is projected to expand from $276 billion in 2021 to over $422 billion in 2031, driven by the need for brand awareness in the digital age, with products and brands often sold on multiple social platforms. We’ll increasingly see companies set up license deals to monopolize their brand, enabling them to enter new territories and create new revenue streams with minimal investment.

As much as brand licensing is a business opportunity, it comes with risk. Using licensed IP beyond the scope of the license agreement can run a risk for both the licensee as well as the licensor which may have conflicting license agreements in place.

Augmented reality to enhance experiences
Despite heavy investment from developers, AR still isn’t widely accepted by the gaming community, with most preferring keyboards and controllers. So why is Tim Cook in Vanity Fair, modelling the latest Apple Vision Pro, and why are companies like Ray Ban pushing their latest sunglasses integrated with AR?

While the global AR gaming market is expected to reach $38 billion by 2027, AR outside of this is expected to hit $60 billion by the end of 2024. Increasingly, we’ll see it transform everyday tasks from buying clothes online to servicing vehicles. What’s certain is that continuous investment in both the hardware and software surrounding this sector will both improve AR technology while making it more affordable.

Getting cover for emerging exposures
The technology, media and IP landscape is changing fast, giving rise to new and evolving exposures that businesses need to address. By looking ahead at what’s next, CFC helps you navigate this complex space with confidence.

Source: www.cfcunderwriting.com


Management Liability Insurance Guide

Management liability insurance is there to protect the management of the company and its subsidiaries, its employees and sometimes the entity itself. It’s a necessity for any company, big or small.

As regulation around corporate behavior and reporting increases, directors and officers are under more scrutiny than ever before. You don’t need to be guilty to be sued – even unfounded accusations of a wrongful act can lead to significant defence costs.

Download CFC’s latest Canada-specific guide by clicking here to find out why management liability insurance is a must-have for any business.

In the guide you’ll learn about:

What a good policy should include
From employee practice liability to crime, but what about kidnap and random or reputation protection?

Key exposures
There’s more obvious risks that impact directors and officers, these are employees, customers and investors / shareholders. But the lesser obvious include regulators and ESG.

Which industries would benefit from a management liability policy
In short, all of them! But it’s suitable for more industries than you’d think.

Policies in action
Take a look at how the policy would be triggered in these scenarios

Conversation starters
Helpful tips and topics to cover with your clients when talking about the importance of management liability insurance

Common misconceptions
Some businesses think they don’t need management liability insurance, so to help you explain the value to your clients CFC has put together five of the most common misconceptions and how to debunk them.

Source: www.cfcunderwriting.com


Package Policies: Making Comprehensive Cover Simple

Today’s businesses face a blend of unique exposures. Here’s the simple way to help them get the comprehensive cover they need with package policies.

Since most businesses today are complex entities, the profile of risks they face don’t fit neatly into a single box. We see it across industries. An architect with professional liability (PL) insurance for their day-to-day work can still be vulnerable to risks in the world of cyber. Just as PL for a distributor of medical devices may not cover a product recall event, leaving the firm considerably worse off if an event occurs.

It used to be that businesses needed to purchase separate policies for each risk—a time-consuming and costly endeavor, with multiple policies also making things more complex when you go on to make a claim. Thankfully, there’s a better way. Read on for CFC’s main package policies.

Package policies from CFC

To remove complexity, CFC has developed a series of package policies that list and cover common risks in different industries. For businesses that aren’t certain of the risks they’re set to face, taking out a package policy ensures invaluable peace of mind, while also serving as a one-stop-shop that bundles different coverages into one policy.

That’s not all. CFC can also tailor coverage to a specific business, adding and removing coverages as required to design a product that’s perfect for them.

Professional services

Tailored to cater to the diverse requirements of professional service firms across a spectrum of industries, our policies encompass PL, commercial general liability (CGL), property, business interruption, legal expenses, directors and officers (D&O) and cyber. Find the product brochures below to learn more.

Healthcare

From traditional healthcare exposures to technology E&O, the healthcare sector requires a policy that addresses its unique needs. With healthcare providers holding vast amounts of sensitive data and their reliance on computer systems, cybercrime cover is even more important alongside the package policy PL and CGL cover.

Life sciences

Within a life sciences sector that ranges from natural health products to biotechnology, comprehensive insurance is imperative for businesses to address their nuanced needs. In these package policies, CFC’s standard coverage extends to include bespoke covers specific to the business.

Property and casualty

For businesses confronted with losses from property damage or loss, tailored coverage becomes essential. For manufacturers and distributors specifically, E&O requires specialized protection against a myriad of potential risks.

Technology and media

Paired with comprehensive cyber cover, these two package policies are built to fit modern business exposures. Including traditional property and business interruption cover, with intellectual property (IP) available to add on.

Financial institutions

With the pace of change in financial services leading to large amounts of sensitive data being stored, the right insurance cover is vital in protecting business-as-usual and driving growth. Financial institution package policies combine standard coverages with industry-specific cover such as kidnap and ransom protection.

Source: www.cfcunderwriting.com 


Six Things Successful Cyber Brokers Know

The case for cyber insurance gets stronger by the day, as cyber incidents grow in cost, cyber attacks become more frequent and cyber policies offer more innovative and effective services. But cyber is still a new market. Businesses often aren’t aware of their cyber risk or the role cyber insurance can play in protecting them. So how can you educate your customers about cyber?

CFC sat down with some of their top-performing cyber brokers to discover their secrets to success. Here are six things they say every broker selling cyber should know:

  1. How to explain cyber exposure simplySince lots of businesses are new to cyber, jumping straight into granular detail can feel unrelatable and unconvincing. Businesses don’t need to know the difference between the Cobalt Strike infection and the Log4Shell vulnerability. They care about how they’re at risk, the potential consequences of that risk and how they can prevent it. So stick to the basics and avoid unnecessary jargon.

    It helps to ask the right questions. What cyber security practices do you have in place? Do you consider data privacy? Have you been impacted by a cyber attack before? Your client’s answers will paint a picture of their cyber exposure, so they can understand their risk and how cyber insurance is here to help.

    And there’s nothing better than a strong statistic to back up your points—did you know 72% of businesses worldwide have been impacted by ransomware in 2023?

  2. Key factors that influence the priceCyber insurance provides great value for businesses big and small, but in many circles its cost is a topic of discussion. Those new to cyber may point to the price of cyber insurance coming close to more traditional lines, so it helps to know the three big factors that influence the cost:

    1.    Cyber incidents, particularly against SMBs, are the top business risk for the fifth year running
    2.    The average cost of a cyber claim is significant
    3.    Today’s cyber policies offer sophisticated technical services that would be too pricey for SMBs to get on their own

    Learn more about why cyber insurance is a great investment for any business, plus a breakdown of cyber incident costs, in this quick read.

  3. How to handle these top objections“I already invest in cyber security.”
    Cyber insurance provides a different service to cyber security, it’s not a question of either/or. Good policies will support the business’s internal IT team or external managed service provider with an expert incident response and business recovery team, while being there to cover financial loss if the worst happens.

    “Cyber attacks only affect big businesses.”
    While it’s attacks on household names that make the news, any business can find itself hit by a cybercriminal. And since smaller businesses tend to have less mature cyber security practices in place, cybercriminals often see them as the more attractive target.

    “We don’t collect sensitive data.”
    Two of the most common and costly cyber attacks we see are actually ransomware and funds transfer fraud, which aren’t necessarily aimed at stealing data. The cost to contain threats, repair networks and restore business operations—or to recover stolen funds—are the insured’s biggest worry. Thankfully, both types of incident are covered under CFC’s cyber policy.

    Use this checklist to find answers for more common objections.

  4. Security assessments don’t tell the full storyBusinesses often use third-party risk reports and vulnerability scans to evaluate their cyber risk. While these assessments give a good snapshot of network health at a specific time, IT environments can change any day. This means assessments don’t reveal much around the level of security across a network, potentially presenting a far more positive picture than is the case.

    Fully understanding when and how risk reports are beneficial will help your clients understand their risk and purchase the correct coverage. We explain risk reports in more depth here.

  5. Good policies offer proactive and reactive servicesCyber insurance doesn’t just cover financial loss when an incident occurs. A good policy offers proactive protection to stop attacks from happening in the first place, and reactive support to respond to the incident efficiently and effectively.

    From the moment a CFC cyber policy is bound, their global team of cyber experts works around the clock to detect and alert their customers to cyber threats targeting their business. If they discover a cyber security issue, their team notifies the impacted business though their Response app, and takes steps to remediate the threat before it escalates.

    The value these services offer to small businesses in particular might just be the greatest benefit a cyber policy can provide.

  6. The perfect analogy that shows the true value of cyberTaking out property insurance in case of a fire is seen as standard practice. Alarms and sprinklers can reduce fire damage, but they can’t remove the possibility of you facing a costly bill and business interruption. It’s the same principle for cyber.

    The most advanced cyber security available can still get caught out by a new vulnerability or threat. Without cover, the impacted business won’t receive support in their incident response and recovery, and it’ll bear the financial burden alone.

    CFC’s cyber policy is the full package. For a smoke alarm they offer proactive cyber attack prevention, for a sprinkler system the largest in-house team of incident responders in market. And at the end they cover any damage and loss of income, helping policyholders get back on their feet.

With today’s cyber policies broadening their cover and protection, and cyber risk escalating at an alarming rate, cyber insurance is set to play a bigger role than ever before. By helping your clients to understand their cyber risk- and how cyber insurance is such a gamechanger – you and CFC can help protect businesses and perhaps even turn the tide on cybercrime.

See how you can best speak to your clients about cyber risk and insurance in CFC’s on-demand webinar.

Source: www.cfcunderwriting.com


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