A La Carte: The Need to Customize Cyber Insurance

“You can’t propose that something be a universal space and at the same time keep control of it.”

So said Tim Berners-Lee, the man credited with inventing the World Wide Web.  And who would know better?

In that same spirit of seeing the Internet as a loose conglomeration of ideas and innovation, with billions of people passing through at any given time, no wonder the world of cyber insurance can be so difficult to pin down.

As a result, most cyber insurance is sold a la carte.  Because each business owner has a distinct set of needs, employee variables, interactions with other entities in the supply chain and customer channels, and other factors to consider, assembling an insurance plan to meet all of those needs – each of which remains fluid and subject to adjustment at all times – can require a lot of homework and planning.

Policies in this sphere are highly customized collections of modular coverage terms.  Premiums and payouts can depend on a company’s history, data risks and exposures, current practices, financial health, and more.  The wise business owner does not select a cyber protection policy based on cost, but rather on need.

When it works well, the premium for a cyber policy matches the business’ risk profile.  To save on premium costs, in other words, make your cybersecurity systems stronger and tighter.  Regardless of how well your cyber operations function, though, making sure you’re protected remains a paramount goal.

Contact the professionals at The Reschini Group for guidance on building a cyber insurance policy tailored to your precise business needs.


Copyright 2020 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Short-Changed: Insuring the True Value of Your Business

The short-cut.  The close-shave.  The cut-corner.  Those tiny “cheats” and little white lies people think can save a few bucks – but that can cost dearly in the long-run sometimes.

Business insurance may present just such a temptation.  How easy would it appear to short-change the true cost of your business and all of its components, if it meant a lower premium to protect them?  But just as something that sounds too good to be true, usually is – taking that tempting path will only lead to a tougher financial patch when a claim is filed.

When securing coverage for a business, make sure you take everything into consideration and assign the proper value to it.  It’s more than physical property.  It also includes your equipment, buildings, contracts, business recovery and lost income, the cost to rebuild, and more.

Business owners may check the current market value of their property when arranging for insurance coverage, forgetting that the valuations used in claim adjustment aren’t dependent on “market value.”  You need to always remember that you’re insuring for the actual cash value or the replacement cost value of your property, depending on the coverage selected.  Additionally, blanket coverage can help in protecting all elements of a business’ property, as long as the values used are adequate at the time of a loss.

By knowingly undervaluing property to achieve savings on premiums, the only person you’re fooling is yourself.  By not anticipating the full brunt of a potential claim when the policy is written, the full cost of that claim cannot be covered should something happen and the policy is enforced.

Contact the professionals at The Reschini Group for guidance on business insurance that won’t leave you short-changed when you need it most.


Copyright 2020 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.