When someone gets it cheaper elsewhere - but wants you to fix it

Austin Powers is a common favourite in my holiday season movie list. When Dr. Evil is unfrozen after 30 years, he awakes into a world with a criminal element that is far different than the one he remembered. In today’s world, cybercrime is advancing quicker than businesses can catch up.



At BOXX, we see that even when businesses do all the right things, they can still be hacked. This is when your client’s cyber insurance policy should really kick in to help offset the planet-size costs of a successful attack. Clean up costs can add up quickly - including specialist technical firms to help with forensics, the costs to re-access data and systems, and of course, lost downtime.


Cyber insurance is the last vital line of defence for your clients. It lessens or transfers your client’s cyber risk and that’s why you need to make sure you've got a comprehensive policy in place.


“You’re The Diet Coke Of Evil” ... replace Evil with Cyber Insurance.


Having ‘full strength’ cyber insurance can mean the difference between surviving a cyberattack or becoming digital roadkill.


Cyber lite endorsements are typically offered with commercial package policies, commonly known as ‘riders’. They are designed to be convenient tag-ons but can be limited in coverage, size and value. Because they are casually referred to as cyber insurance, many businesses, ruefully, believe they are getting full-strength cyber coverage. Yet, most are limited to privacy breach expenses.


Their liteness is only discovered when there is an incident. See more on that below.


"Why Make Trillions, When We Can Make...Billions?"


Many cyber endorsements, attaching to business package policies, are typically limited to privacy breach expenses and limits in the region of $25,000. They have not kept pace with threats like cyber extortion and cybercrime and nor the size of their losses. This leaves gaps in coverage and gaps in limit, leaving many ‘insureds’ having to pay out of their own pocket for losses.


"Well Don't Look At Me Like I'm Frickin' Frankenstein!”


And when there is a cyber loss, and your client discovers their cyber endorsement is limited in both value and ability to respond, they are going to look at you, their broker, for advice. They may also look for an explanation.


So what limit is reasonable?


With costs of privacy breaches rising every year, we see the majority of our business clients purchase limits that are significantly higher than $25,000. In the good old days (by this I mean two to three years ago) hackers were content to steal your data and try to sell it on the dark web. Cleaning up from that was expensive enough. But now, using ransomware, they will lock up your entire operations - causing you downtime, lost sales and customers every day. Not to mention the regulatory cost exposure that is set to balloon with the proposed Digital Privacy Charter.


What covers need to be considered?


Privacy breach and related liabilities are definitely a valuable coverage. But in these days, given the crippling effects of cybercrime, your clients should ensure they have coverage for damage caused by hackers, cyber-ransom, business continuity services (so your clients can continue to run their business while they recover from the attack), and of course, social engineering and business email compromise.


BOXX’s coverage is current, first-class and premiums start from less than a dollar a day, making it affordable to even the smallest business. In the new year, look out for BOXX’s Cyberboxx rider that can be bolted on existing policies for smaller clients and sole operators. It won’t be as novel as 'Sharks With Laser Beams Attached To Their Heads" but it may be useful.






Vishal Kundi

CEO & Co-Founder of BOXX Insurance Inc.

For more information, please feel free to contact the following members:

Vishal Kundi: Vishal.Kundi@boxxinsurance.com

Michelle Diniz: michelle.diniz@boxxinsurance.com

Chris Masaki: chris.masaki@boxxinsurance.com

Mike Senechal: mike.senechal@boxxinsurance.com

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