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Looking for Scenarios That Resonate With Personal Lines Clients

Simple human errors — as opposed to sophisticated hacking attacks by cyber criminals  — are a common cause of cyber liability issues. Even so, personal lines clients often find it difficult to see the need for cyber liability insurance.

These were among the points made at the recent Personal Lines Practice Group teleconference, focusing on cyber liability.

“Clients can’t always relate to cyber liability situations,” one group member said. “I’m embarrassed to tell this story on myself, but clients have understood it. I received an email from a contractor, and I was expecting an invoice. The email gave me four ways to open the document and appeared to have been sent in a secured fashion. It asked me to log into Outlook, which I did. The next thing I knew, it had sent a junk email to everyone in my address book. Fortunately, nothing else happened but it could have. We have all sorts of email security, and I opened it by simple error.”

“Smart” homes

“When it comes to smart home devices, clients are more concerned about someone turning the heat up to 100 degrees than criminals gaining access to their homes.”

Cyber bullying

“People are more concerned about someone bullying their children than about their children bullying someone else.”

“In the old days you had a fight behind an alley. You walked away and avoided the person in the future. Today we can have cyber bullying all over the Internet. It can require digital forensic analysis to find it all and remove it.”

Computer cameras

“We recently had a demonstration on new telephone equipment and the company representative had taped over the camera on her laptop. She said company policy required that the camera be blocked to prevent cyber intruders from turning it on. I’ve shared this with our clients. This is a simple thing that you can do yourself.”

Unsubscribe functions

“We’ve been cautioned not to unsubscribe from junk email. When you unsubscribe, it verifies that you are a real person and your address can be sold to someone else. Put unwanted email into the junk folder but don’t open it and don’t unsubscribe.”

Compelling scenarios

“We need to come up with three claims scenarios that will wow clients and make them think this could happen to me.”

“There is sticker shock at the cost. It’s almost like flood insurance. We shows it to everybody put people rarely buy it unless they’re on the coast or in a flood zone.”

“Here is a scenario that resonates with clients on flood insurance. A few years ago a water main broke at UCLA. People realize that floods can happen to them, even if they aren’t near a river.”

Cyber seminar for clients

“We had a successful seminar for clients on cyber insurance. It was at 4 p.m. and we served cocktails and appetizers. We’ve had success with this timing for seminars.  We invited both commercial and personal lines clients. Some came themselves, and other sent assistants. We also talked a lot about social media, including the day that Twitter went down.”

Requiring Sign-Offs?

How do you treat new versus current clients? “We plan to send an email letter to all clients advising them that a cyber product is now available. We tell clients they can remove cyber coverage although we don’t recommend it. “

“We do something along the same lines in our new business proposals. We may ask prospective clients to sign off if they don’t take cyber coverage.”

“We don’t go into a lot of details on cyber insurance, and we don’t ask clients to sign off if they don’t take it. If we are going to offer it to one client, we want to offer it to all of them. If we offer cyber to high net worth clients, do we have to offer it to smaller clients?


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