Business Cyber Coverage

Business Cyber Coverage





Business Cyber Coverage: Ransomware is on the rise.

According to Cowbell Cyber: in 2021, the average ransomware payment increased by 43%, business interruption due to ransomware attacks increased by 10%, and almost 80% of these attacks included the threat to leak the hijacked data.

Businesses need to improve their ransomware protection. To help, we’ve put together “5 Steps to Proactively Address Ransomware” to help your clients!

Ransomware attacks can affect any business, regardless of size or industry. Cyber insurance prepares your clients for the worst – first by helping them proactively improve their risk profile and second by enabling them to recover faster and at a lower cost when an incident occurs.

Our standalone cyber insurance product, Cowbell Prime, empowers you to easily offer customizable policies that match the unique needs of any business and using AI we make upgrading your clients to a robust cyber policy easy and fast.

Standalone cyber insurance is essential for protecting your clients. 7/1 renewals are your opportunity to upgrade them.

Business Insurance and Covid 19


Business Insurance

How Business Insurance Responds To COVID-19 

After weeks of shelter-in-place orders, crashing markets and industries decimated virtually overnight, business owners can’t help but embrace reality and prepare for the long-lasting impacts of COVID-19. As part of the process, it’s crucial to understand how business insurance responds to COVID-19-related issues.

So how can various types of business insurance help companies get through the pandemic? Here are the insurance coverages and major factors — operational, political and regulatory — that can make or break coverage in this trying time.

Business Interruption: Physical Damage And Civil Authority Issues

The business interruption (BI) feature of a property insurance policy responds when a business is inoperable due to physical damage, such as a fire or structural damage. Disasters of this caliber can quickly, albeit temporarily, close businesses, resulting in severe loss of income. Some policies also include coverage for civil authority interruptions, which is when a governmental authority orders the closure of businesses. In both cases, claiming income losses typically triggers BI insurance to respond.

Unfortunately, recovering COVID-19 losses under a Property policy is an uphill battle at the moment.  It’s highly unlikely that, under most policies, insurance carriers will qualify COVID-19 BI losses as caused by physical damage or a civil authority claim. We’ve seen this already in the declination letters received from many carriers.

Physical damage requires direct physical damage to the property and many insurers have taken the position that direct physical damage does not exist under the current circumstances. While some business owners have sued, claiming that the virus can be present on surfaces in their office or store, therefore directly physically damaging it, courts are far from resolving this dispute. Most policies have a standard virus exclusion that may also exclude coverage. Furthermore, claims based on civil authority are being declined because police have not physically cordoned off spaces, which is typically required for a successful recovery under this coverage.

For further discussion or to answer specific questions about your coverage or circumstances, please give us a call.