As professional and financial risks evolve, you’ll be prepared with Amwins. Through our expertise, market access and proprietary products, Amwins' professional lines insurance specialists find solutions for accounts of all sizes and complexities.
As professional and financial risks evolve, you’ll be prepared with Amwins. Through our expertise, market access and proprietary products, Amwins' professional lines insurance specialists find solutions for accounts of all sizes and complexities.
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Amwins offers our clients discounts with industry-leading cyber security service providers who can help insureds improve their risk profile.
Our proprietary cyber benchmarking tool analyzes data from thousands of cyber liability placements, then determines a reasonable policy limit and premium relative to those in similar industries and revenue ranges.
From designing a proactive claims management plan to engaging on difficult and complex claims, Amwins supports our clients when they need us most.
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In 2018, companies within the energy sector, from suppliers to producers, rely heavily on operational technology to perform daily operations. Internet-connected networks and systems for activities such as pipeline management, workflow automation, real-time monitoring of equipment, reservoir modeling, use of electronic data interchange (EDI), and many other activities utilize connected networks and software in order to optimize efficiencies, save money, and ultimately, increase profits. With this increased connectivity comes increased cyber risk. Despite this fact, nearly 65 percent of respondents in the Ponemon Institute’s 2017 study rated their operational technology response readiness as less than “high.”
The energy sector has experienced numerous cyber-attacks. Significant security breaches include:
While it’s clear that the threat is persistent and that preparedness is minimal, the number of energy-related companies purchasing Cyber Liability coverage is lower than it should be compared to other industries. If the coverage isn’t purchased, it cannot respond, and companies will be left to fend for themselves in the event of a network security or privacy breach incident.
Emerging trends in the network security world are increasing the need for energy and energy-related companies to consider purchasing Cyber Liability coverage.
Energy companies should utilize table-top exercises with their leadership teams, risk managers, IT leaders and others to create a game plan for every possible cyber threat. Nevertheless, we know that some attacks will still be successful. Here are some examples of threats and possible insurance solutions.
THREAT | POSSIBLE INSURANCE SOLUTION |
Lost revenue from a network interruption arising from ransomware. | Cyber insurance covers the ransom payment if necessary, as well as the forensic investigation to determine the scope of the threat and to shut it down. Insurance pays for business interruption losses and extra expenses to return to full operation. |
Network shutdown at a critical third-party vendor reduces or completely stops operations for the named insured. | Cyber insurance with the proper system failure insurance wording covers business interruption losses and extra expenses until the vendor recovers or coverage period runs out. |
Hackers enter the network and turn off safety measures, leading to a massive pollution event. | A Pollution policy without a network security exclusion would have primary responsibility for assisting with clean-up expenses. A Cyber policy with proper pollution exclusion amendments assists with IT forensics, regulatory investigations, and possibly, business interruptions. |
Cyber thieves spoof the corporate controller into wiring $500,000 to a fictitious vendor account. | Crime insurance assists with repayment of unrecoverable funds. Cyber insurance assists with the forensic investigation to ensure that the client’s computer network hasn’t been compromised. A Cyber policy may have a sublimit for cybercrime, as well. |
Hackers enter the client network and exfiltrate thousands of personal health and financial records of current and former employees. | Cyber insurance helps with legal and IT forensics, notification and public relations expenses, regulatory investigations, establishment of call centers, credit and identity monitoring, fraud resolution and more. |
As threats continually evolve, it is virtually impossible to adequately prepare for every type of cyber-attack; however, appropriate coverage can play a key role in mitigating risk. As a result, brokers are advised to ask their clients numerous and detailed questions regarding their threats, in order to assist brokers and underwriters in effectively matching risks with insurance solutions.
This article was authored by Megan North, a Professional Lines broker with AmWINS Brokerage of Texas in Dallas.
In recent years, unintended coverage for cyber events has bled into other lines of insurance – prompting insurers to adopt various exclusions and changes to non-cyber policies. This phenomenon is creating a new class of coverage gaps known as silent cyber.
In response, Amwins created CyberUP, the market's first insurance product designed to counteract silent cyber. This cyber umbrella policy provides retailers and insureds peace of mind for whatever type of losses are triggered from a cyber event.
Read more about the Amwins' product innovation and CyberUP.