Cyber Insurance – My Trick to writing in Bulk
What’s up everybody? It’s Cyber Awareness Month, and I would be remiss if I didn’t share my number one trick for writing cyber insurance in bulk.
You Need To Go Deep
My good friend Scott Howell always says, “I’m the guy that’s going to give you all 15 ingredients to Aunt Bee’s chili.” We’re going to talk about my number one hack as a producer for writing cyber insurance in volume. Now, listen, managed services providers in today’s day and age are a very, very difficult class of business to write, and it’s not something that you want to “dabble” in as an agent. You need to go deep and understand exactly what they’re doing and how to cover them properly.
Simply writing a Cyber Insurance policy and hoping for the best is not how you want to go about this class for certain because it has to be customized to their exact operations. I also don’t recommend combining the tech E&O and the cyber unless it’s a great form that you’re a hundred percent comfortable with because you can have some loopholes in there for the carrier to get out of paying claims that you don’t want. But enough about that.
Problem not Product
The number one thing that I do, and you know that I do this because I talk about focusing on the problem that needs to be solved and not the product that you’re selling. You’ve got to look at the master services agreement. Not only will it tell you how your client has handled risk transfer and whether or not it’s effective, but it’s also going to show you things like what they require of their clients to make sure that they’re pushing as much of the frontline risk off on their clients as possible.
Because let’s face it, hackers love managed services providers. Why? Because they’re the gatekeeper to hundreds, if not thousands, of other businesses. So if they can get to the mothership, everybody else will be destroyed in the process, right? So my number one hack is that I look at the master services agreement, and I require all of my master agreements for managed services providers to require that their clients have a cyber limit of at least a million dollars.
Cyber Opportunities are Already in Front of You
Well, David, why would you do that? Let’s go back to what I talk about on the podcast all the time. I am not the guy that wants to make ten phone calls to get one appointment. I want to make one phone call and get ten appointments, and that’s exactly what I’m talking about. If you have a managed services provider with 500 clients of their own, that’s 500 cyber opportunities for you. Whom do you think they will refer their clients to, right?
If you can make this important to them, if you can show them a path of least resistance for how they can refer every one of their clients to you to meet that cyber requirement, there are endless opportunities for you to round accounts and write more business than you’ve ever thought about writing before.
I talk about workers’ comp a lot, but people, do not sleep on cyber. It is an excellent way for you to lead in and write new business. But if you want to go after the MSPs, those managed services providers, you’ve got to focus on how you can write it in bulk. Then have a process on the back end for remarketing to those clients you write cyber for to round the account into all lines and bring them back in. If you can do that, beyond a shadow of a doubt, you’re going to kill it in commercial insurance.
I hear it all the time, “David, I just don’t believe there are people on every corner waiting to hand out their business to you