With two carriers now offering master PEO cyber programs, the question here is PEO’s be able to sell these as part of their overall package?
A recent 2017 RIMS survey has shown that 83 percent of organizations have a standalone cyber insurance policy (up 3 percent from 2016) and only 14 percent are utilizing the cyber coverage offered in their other insurance policies.
One reason for this statistic could be that Risk Managers want specific endorsements and add-on coverages that apply directly to their industry or are a result of a problem they’ve faced in the past. This has been a crucial part of individual cyber policies over the past few years as the carriers try to keep up with the quickly evolving cyber space.
With the above in mind, it may be difficult for PEO’s to make this as part of their basic package as EPLI has become over the past decade.
I would like to note the PEO cyber program has one crucial endorsement, Social Engineering, that can be added on for an individual client company. This has to be individually underwritten for each client company adding another layer for the PEO sales rep to cross-sell.
If you work in the PEO industry, please comment below with your thoughts of PEO’s offering cyber coverage to client companies. For more statistics from the RIMS survey please visit: http://www.insurancejournal.com/news/national/2017/08/25/462357.htm