There is no one perfect insurance policy for all clients, but retail agents can help their insureds find appropriate coverage forms by focusing on the exposure. This is especially true of cyber liability insurance.

In an increasingly connected world, many cyber insurers are reporting a significant increase in social engineering claims — particularly at organizations involved in real estate and other financial services. That means retail agents and their insureds can expect to see some changes in the marketplace. As social engineering scams increase, some insurers are reducing cybercrime limits, raising premiums for cybercrime coverage, requiring policyholders to take risk mitigation steps or withdrawing from covering cybercrime altogether.

Week after week, hackers and cybercriminals crank out new phishing campaigns, launch creative digital extortion threats and continue expanding payment card scams. Cyberattacks remain the top concern of businesses, yet, only about 55% of Fortune 500 companies and 35% of small to midsized companies (SMEs) buy cybersecurity insurance, according to PC World. And, recovery from such an attack is costly according to Cisco’s 2018 Security Capabilities Benchmark Study: 54% of all cyberattacks result in financial damages of more than US$500,000, including, but not limited to, lost revenue, customers and opportunities, as well as out-of- pocket expenses.