Important Memo:  Market Issues and ASCII Program 2020

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We are pleased to Introduce you to the ASCII Lloyds Insurance Program powered By TechRisks.com.   Our Insurance Program offers market leading coverages and terms.  In fact, Lloyds of London is offering an enhanced cyber crime and theft of funds coverage option to directly protect your firm this year. The marketplace is under severe pressure right now.  Data loss, cyber-crimes, extortion and ransomware losses are exponentially increasing (both in number of claims and severity).  MSP’s and RMM Software in particular are under attack.

We need your help!   ASCII, Lloyds, TechRisks.com and our partners are working overtime on these issues, like you may be. We are developing best practices.  These involve Standardization and Protocols that should be met (or at a minimum addressed & considered).  ASCII's exclusive program and ASCII preferential pricing arrangement still exists.

Our new application process will assist all parties in important areas.  If you are an MSP: as defined by using, deploying or offering RMM Software, please complete the supplemental pages.    Share the application with management & key tech employees if you need help in answering a technical question. Kindly complete and return as soon as practicable.   The sooner Lloyds receives your complete application, the more time you and I will have to review best terms for us to proceed with.   The app and processes deployed are works in progress. Several insurance carriers are pulling out of the MSP business. A number of competitors on the program brokerage side are either cancelling or non-renewing tech firm clients. Reinsurance companies are also nervous.  Rates in general are also increasing  across most industries. Once again and of note, insurance companies are incurring & realizing major “cyber” losses.  Unfortunately tech firms are prime targets. In effect, if a bad actor get access to your MSP Network, he / she can likely shut down your client systems as well.  This occurring more frequently of late.

We are working on risk management techniques including blockchain and other technologies to remediate and lessen the long term exposure, so that the marketplace settles and becomes more “mature & stable”.  Please review the  Cyber Incident Response Plan info that is provided in our Program Offerings.  This is a free service and we encourage you to use it, especially if you suffer an attack.  To clarify, this is included in most quotes sent this year.   It has helped a number of our insureds and the feedback has been excellent.   Your firm needs our tech package coverages more than ever.  We would not go bare without the insurance this year for several reasons.  We I have seen this happen in other industries.   Ironically our rates have been largely flat for ten years as long as your exposure and revenue has not increased above certain thresholds.  With that said, we will provide you several options including coverages for 1st party cyber crime and theft of funds (which includes protection for owners personal financial assets in case of a security breach). 

We are also seeing contract requirements for banks, financial, tech and other firms increasing “cyber” limit requirements.  I would strongly consider locking in now on one of these options, even the higher limits as it could protect your interests in 2020 and beyond. There are challlenges and necessary changes that must be made in order for “cyber liability insurance” to stabilize. The proactive tech firms that embrace said changes, will be the ones that survive and thrive (as it is thought that many of your competitors are uninsured or underinsured in critical areas).  Next, several of your clients may be also facing challenges in this area.  It should be understood, that we will defend and indemnify your firm for your tech products and services.  Just because a client suffers a network security breach, that does not mean your firm is liable.  For example, they may use tech products and network security services from other providers and software companies or worse yet, they may have a rogue employeee. Thus…. 

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Your Clients need to have their own cyber insurance. We can provide your clients these services and protections.  One area under development we can prossibly partner with your firm on is the Cyber Prevention, Awareness and Incident Response.  We can help Prevent, Detect and Respond to Cyber Incidents. For as low as $100-200 per year, our packaged Cyber Plans positively fund,  address and insure these vital services.   Indications can be provided often upon receipt of 5 (five) basic questions at this time.  Cyber terms and condition, availability vary greatly by non-tech firm class type. As an FYI,  the insurance marketplace and our competitors are very fragmented in this area. Some insurance companies offer nominal sublmited coverages of $10,000 and little to no cyber crime or true extortion coverage.  Most don’t offer Cyber Incident Response Services.  In our opinion, this is not cyber insurance.

Try to get as many of your clients under written contract as possible. If you provide sales and service work on a project basis.  Outline said products and services being provided, include the terms and conditions of your work being done.  Look at what your competitors use.  Google similar contracts online or if you have a lawyer, have him draw up contract wording.  Review items like guarantees, limitations of liability.  If you need help, let me know as we are bringing contract support online with key partners.

Use workorder changes.  Get signoffs on all proposals, change orders, invoices,  etc.  Document and keep records including email correspondence, etc. with clients here.   It should be noted that cyber crimes, extortion and data loss are a real problem right now.  If you offer your client a network security type of product like antivirus, backups or firewalls, note that in your documentation.  For example, I am offering you XYZ back up service, ABC software or DEF firewall server etc..   Client either agrees to purchase or declines.  Document that clearly with signoffs noting client is aware they are solely responsible for any liability or losses if they decide to decline said network security or technology product (you professionally recommend) which may protect and help them and their interests.

Finally please double check your client contract requirements. We will provide E&O, Cyber, Privacy, General Liability and Property Coverages in most quotes. If you have workers comp, auto, crime, employment practices, umbrella, cyber insurance for your clients or other insurance needs, they are immediately available upon request to e-contact@techrisks.com  and completion of basic application information

Kindly review the application or standardization recommendations. Some tech clients of ours have ironically found certain questions to be beneficial.  From a business risk management standpoint, they address key issues or highlight problem areas you should be aware of.   We hope this helps explain the marketplace situation and what our best options are for this year.   If you have any questions, feel free to email or call us at any time.  Thanks in advance!