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Cyber Insurance: What Heavy Equipment Dealerships Need to Know [Coverage Pitfalls to Avoid]

By Seth Hird | Posted on June 3, 2020

JT Bates Group Products| Ricker+Associates

The Newest Insurance Trend

JT Bates is building insurance programs for the equipment industry via our insurance consulting service. Recently, we have noticed a new trend. Cyber insurance has been the focal point of insurance innovation. Even so, how cyber insurance programs function and what is specifically covered by those programs is commonly misunderstood. Below are some common questions that we receive from equipment dealerships.

  • Do I need a cyber policy?
  • What types of cyber policies should I search for?
  • What does my cyber policy cover?

Answering these types of questions is no easy task and unfortunately, most agents only address two issues. First, the agent will look at the plan with the lowest premium. Secondly, they will address the policy limits. However, there are so many variations, exclusions, deductibles, and limits in this process. So, unless the policy was specially designed for you, it is very likely that you’re missing at least one crucial item.

Know Your Policy – Change Your Premiums

Here are two questions you can use to examine your knowledge of your policy. These questions are vital to answer because they can establish the price of your premiums.

  • Do you know your retention limit?
  • Do you know the proper dollar limit for your exposure?

Even though the answers to these questions are essential, there are over 26 areas of protection that need to be considered. Understanding these 26 areas will ensure that you are fully aware of your cyber exposure. Did any agent cover all 26 of these options? Our insurance consultants will cover these options and more.

Breach Management is one of these critical options. Questions you could ask yourself are, “Do I know what protection breach management offer,” and “Do I know what a breach management coverage option covers?” Unfortunately, many of the policies reviewed by our insurance consultants have incorrectly utilized this costly option. As insurance coverage experts, we can walk alongside you to prepare and protect your business from the unknown.

Next Steps

First, if you have any questions about cyber insurance, please reach out to us. Second, if enrolling as a client of our service interests you, there is a special offer we want to extend your way.

“If we cannot improve your protection or implement the proper protection at the most reasonable rate, our services are free. Also, if we can improve your protection or put the proper protection plan in place, it will cost you nothing except the premium for the policy.”Jim Ricker

Insurance becomes meaningless when your coverage doesn’t fit your business needs. While you may never have a claim, the confidence of knowing that you are protected is invaluable.

Click here, to read all blogs about JT Bates Group products and services!

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