The Best Cyber Liability Insurance Carriers

The Best Cyber Liability Insurance Carriers

By Emily Short

The Best Cyber Liability Insurance Carriers

The cyber liability insurance market continues to grow, with more and more cyber insurance carriers entering the marketplace.  This competition has led to broader coverage and reduced pricing for our Insureds.  This article will explore the best cyber liability insurance carriers.

According to a recent industry report there were 528 U.S. cyber liability insurance carriers writing business in 2018, up from 471 in 2017.  The report identified that ten cyber liability insurance carriers held 69.5% of the market in 2018.  The top five based upon direct written premium were Chubb, AXA US, AIG, Travelers, and Beazley.

So, what should you take away from this report on the best cyber liability insurance carriers?

  1. As more cyber liability insurance carriers enter the market, pricing should remain stable, and
  2. Although there are a lot of cyber liability insurance carriers writing the business, not all are created equal.

Obviously, there are a plethora of cyber liability insurance carriers, but that doesn’t necessarily mean an Insured should partner with just any one of them.  As we’ve discussed on this blog many times, cyber liability insurance policies are nuanced, and it’s important to understand what the policy actually covers.  Some carriers have “minimum security standards” exclusions, which preclude coverage if your systems don’t maintain minimum security standards.  Unfortunately, “minimum security standards” is rarely defined, and is extremely subjective. Other carriers may offer a multitude of different coverages, but you may only purchase the liability insuring agreement.  With the rise of ransomware and social engineering attacks, it’s important Insureds have a policy that will actually respond when (not if) an incident occurs.

Based upon our experience, here is a list of some of the best cyber liability insurance carriers (in alphabetical order).  The right cyber liability insurance carrier for you will depend on a number of factors, including industry, size, and the exposures unique to your business, so this list is not meant to be exhaustive.  For example, if you own a ridesharing platform, one of these carriers may not be the right fit for your exposure.

The Best Cyber Liability Insurance Carriers

  1. AXA (previously XL Catlin)

AXA XL is a great partner for our mid-sized Insureds.  Their policy form includes broad terms and expanded coverage for all types of risks and exposures.  Their reimbursement period for losses arising from a data breach or cyber-security breach is 18 months, and they offer an unlimited reimbursement period for loss of business income, which is extremely valuable for a large scale incident.  AXA XL’s expansive appetite means they are willing to write most industries.

“AXA XL Insurance’s cyber insurance policy comes with expanded coverage and even broader terms to protect against today’s emerging risks. We offer coverage for data protection risks, both for the third-party claims and first-party mitigation costs following a technology or cyber event. We have dedicated and experienced attorneys who provide hands on service through the entire breach and claims process.  And as part of your CyberRiskConnect policy, we’ve identified and negotiated preferred rates to provide breach response services with specialized rates.”

  1. Beazley

Beazley’s BBR cyber policy form is one of the most comprehensive admitted products in the marketplace.  In addition to the traditional first and third party coverages, Beazley’s form offers system failure, dependent system failure, and crime coverage for fraudulent instruction, funds transfer and telephone fraud. Beazley takes a unique approach by offering multiple towers of coverage so that an Insured’s breach response costs do not erode the third-party liability limits. Additionally, Beazley’s dedicated in-house Breach Response Services unit assists BBR policyholders at every stage of incident investigation and breach response, which is vital for our Insureds.

“Having managed breaches for more than a decade, Beazley recognizes that preparing for and preventing breaches have become inseparable from insuring them. With Beazley’s 360° approach, companies have access to a comprehensive set of services, products and solutions, which are beautifully joined together, to protect their business from the dangerous world of cyber risks. We believe not just Fortune 500 companies should have access to these products and services, especially when your walls have been breached and you need them the most. It is your reputation that is on the line.”

  1. Chubb

Chubb is another great carrier for cyber and tech exposures for companies of all sizes. In addition to broad policy language, Chubb has a dedicated cyber claims team that works exclusively on their Insureds’ claims.  As we know, in the event of an incident, Insureds want and need the claims process to go smoothly.  Chubb also provides access to a Cyber Incident Response Coach that is generally available at $0 retention.  The coach provides immediate triage, consultative and pre-litigation services to the policyholder in the event of a privacy event, including assimilating critical information and resources to develop an appropriate incident response strategy.

“Chubb has handled cyber incidents and underwritten cyber exposures for policyholders for more than 15 years. Over this time, Chubb has cataloged a considerable amount of loss data. A careful analysis of this proprietary data shows that the best way to combat the constantly evolving world of cyber risk is to implement a three-prong approach to cyber underwriting that incorporates risk transfer, loss mitigation services and post-incident services. Why? Because technology and cyber risks are enterprise-wide issues that require an enterprise-wide solution: Chubb’s Cyber Enterprise Risk Management (Cyber ERM).”

  1. Coalition

Although newer to the cyber insurance carrier marketplace, Coalition has quickly shown it is willing to provide cutting edge coverage and technology.  Coalition also has one of the most innovative and streamlined underwriting processes making it easy for insureds to secure coverage.  Uniquely, Coalition offers coverage for cyber triggered pollution; rare for the industry, but important for some Insureds.

“Coalition, the fastest-growing provider of cyber insurance in the United States, combines comprehensive insurance and cybersecurity tools to help businesses combat cyber risk. Backed by A+/A rated insurers Swiss Re Corporate Solutions, Lloyd’s of London, and Argo Group, Coalition provides companies with revenues below $1B up to $15M of cyber and/or Technology E&O coverage in all 50 states and the District of Columbia. Coalition’s cyber risk management platform provides an up front cyber risk assessment, 24/7 security alerts, threat intelligence, expert guidance, and cybersecurity tools to help businesses remain resilient. Coalition is headquartered in San Francisco.”

  1. Evolve

Evolve is a leading cyber liability MGA with broad coverage, an experienced claims team, and a streamlined underwriting process.  One of the unique product features of Evolve’s form is cyber triggered directors & officers coverage; this is an important feature for companies who purchase directors and officers policies with absolute network security and privacy liability exclusions.  In addition to a great product, Evolve has some of the best educational marketing videos in the industry.

“Evolve MGA is “cyber specialist” market with one of the broadest cyber policies in existence, due to their lack of risk management warranties and unlimited reinstatement on 22 essential 1st party coverages needed in a ransomware or funds transfer fraud claim. As a cyber specialist, Evolve offers over $5,000 of risk management services and 24/7 access to consultation from forensic experts & data breach attorneys free of charge for policyholders. Evolve not only won Advisen’s 2019 “Newcomer of the Year,” but their claims handling incident response team in London won, “Cyber Risk Event Response Team of the Year.”

  1. Tokio Marine HCC (previously NAS)

TMHCC, formerly NAS, is a great partner for our small-to-midsized Insureds both from a coverage and pricing standpoint.  TMHCC’s form offers broad policy language, and can include sublimits for cutting edge coverages such as bodily injury, TCPA defense, patent defense, and more. Additionally, TMHCC provides a security risk assessment service with each quote that scans an Insured’s website for vulnerabilities, which is a valuable conversation starter for many smaller sized organizations.

“Tokio Marine HCC (TMHCC) is a leading specialty insurance group transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance. Headquartered in Houston, Texas, the company is comprised of highly entrepreneurial teams equipped to underwrite special situations, companies and individuals, acting independently to deliver effective solutions. TMHCC’s products and capabilities set the standard for the industry, as many of its 2,900 employees are industry-leading experts.”

Although we hope this list of the best cyber insurance carriers will be beneficial for most of our Insureds, we recognize many have unique exposures, and one of these carriers may not be the right fit.  As mentioned above, 528 U.S. carriers were writing cyber business in 2018.  528! That’s a lot!  Work with your experienced broker to determine the appropriate carrier for your organization.