Excluse Me! What Do You Mean We’re Not Covered?
No, this isn’t a typo. “EXCLUSE ME?” is an appropriate response when your business has a loss that you expected your insurance to cover, but an unexpected policy exclusion results in your claim being denied. This is a truly helpless and often infuriating feeling.
This can be particularly true, for example, with cyber insurance which often lacks the policy limits and breadth of coverage needed for this complex and ever-changing threat. Many cyber policies exclude employee error, rendering them practically useless since many cyber-attacks (including phishing and spoofing) prey on employee error. Even trained employees can be outwitted by shifty cyber criminals.
As another example, property insurance can be troublesome and often excludes flood, sink holes, earthquakes, terror, chemical, nuclear, biological and environmental events.
Whether its cyber, property or another line of insurance coverage, when your business suffers a loss, you need coverage not EXCLUSES.
Businesses seeking broader coverage – not EXCLUSES – are often rewarded in the Alternative Risk Transfer (ART) market. Alternative Risk Transfer (ART) approaches and vehicles have fueled an ongoing shift in the business insurance marketplace. More and more companies with solid risk management practices and good loss histories are moving some or all of their risk into the ART market. ART programs often include captive insurance companies (CICs) and risk retention groups (RRGs) and enable businesses to reap greater rewards from strong past performance. ART approaches can help provide cost control, flexibility, the ability to reap insurance profits, rewards for a good loss history and fewer policy exclusions – More meaningful coverage – not EXCLUSES.