Monthly Archives: April 2022

Have You Taken The Steps To Purchase A Stand Alone Cyber Policy?

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cyber insurance

Over the last couple of years, I’ve been telling clients and prospective clients alike that now is the time to buy a stand alone cyber policy.  If you haven’t taken the steps to purchase a policy, there couldn’t be a better time than right now.  

Claims are increasing: Ransomware, malware, phishing schemes and fraudulent funds transfer just to name a few of the claims issues that seem to be an everyday occurrence.  Because of the increasing claims, obtaining a standalone cyber policy is getting a little more difficult.  

Carriers are beginning to get a little more selective on who and what industry they want to insure. Policy terms and conditions are beginning to get a little stricter and some carriers are even beginning to exit the marketplace and not offer coverage at all.  

Just a few months ago, one of the larger carriers that write cyber insurance did exit the market and no longer writes the coverage.  Worse yet, one of the ugly consequences of all this, is that the pricing on cyber coverage has started to increase and let’s not forget that ugly word inflation that also is playing a part!

If you haven’t purchased a cyber insurance policy yet, do it now or at least apply for coverage so you can review the offer and make an informed decision.  Keep delaying the process or decision and you may find yourself unable to secure coverage at all and the market has made the decision for you. 

Have any questions about the topic discussed in this article? Contact us today! 412-563-2106.

Will Working Less Hours Affect My Legal Malpractice Premium?

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I get asked by most lawyers who are cutting back on their practice hours if and how that will affect their legal malpractice insurance premiums.  

Most are surprised when I tell them that it really won’t have much of an impact on pricing this renewal.  Or for the next couple of renewals for that matter.  

Insureds need to keep in mind that your future workload/hours plays only a part in the pricing and underwriting process of your renewal.  

Another much larger part in the underwriting/pricing process is your prior acts coverage/hours.  For example if you have been insured for 10+ years, working 50 hours per week, and this renewal you decide you’re cutting back to 30 hrs per week to spend more time at home.  Granted you will be creating less exposure for the carrier by working 20 hrs per week less but the 50+ hours per week you worked for the last 10+ years doesn’t go away and that exposure to claims still exists.  

Carriers do and will price for that.  Overtime, the reduced hours you work will have an impact on pricing but not in the near future.  

It is always nice to be in a position to work less hours per week, but don’t expect it to have an immediate impact on your malpractice pricing.  Overtime, yes but not immediate.