Excess insurance is a way to increase the amount of coverage you have for a given policy. If you need to file a claim with your current policy and your carrier pays 100% of what you are due, but you have more incurred costs than your primary policy covers, your excess policy can help cover these additional costs.
You may need excess for contractual compliance reasons or your business may provide a product or service with a high risk profile, increasing your need for protection in case of lawsuits and losses.
Why do you need Excess Tech E&O / Cyber?
In today’s risk landscape more and more companies are exposed to technological and cyber risks than ever before. As businesses increasingly take advantage of the cloud, online platforms and tools, and 100% digital workflows, cyber and technological errors and omissions risk increase as well.
Data breaches, data loss, loss of transferred funds, and any court proceedings or lawsuits that ensue can interrupt business, and stunt the growth of your organization. Your existing Tech E&O and Cyber insurance policies might not be enough to cover what this evolving landscape has in store.
Additionally, startups with better insurance coverage are more attractive to investors. According to Embroker’s recent Cyber Risk Index Report, nearly half (49%) of startup founders cite cybersecurity insurance protections as required by their investors, their board or both. And a staggering 97% of founders discuss their cyber protections and issues with investors and board members — that’s how vital this coverage is to them.
In light of this, you may need excess for:
- Contractual compliance. You may need to carry specific limits to meet the contractual requirements of your customers.
- High risk products or services. You may be required to purchase higher limits to protect yourself if your technology service or product (software, hardware, component part, etc.) is not delivered, is delivered late, or fails to perform, etc. and causes a client to sue.
- Risk transfer. You may want to transfer specific risk away from your balance sheet to a third party (i.e. an insurance carrier)
What does Excess Tech E&O / Cyber cover?
Excess Tech E&O / Cyber follows the form of your existing coverage. This means that the same risks outlined in your primary insurance policy are covered. For Embroker’s Excess Tech E&O / Cyber product, if the Underlying Aggregate Limit is $1M, you can apply for $1M or $2M excess limits; if the Underlying Aggregate Limit is $2M, you can apply for $1M, $2M or $3M excess limits, and so on.
Embroker’s Excess Tech E&O / Cyber
No need to call multiple carriers and submit multiple applications to get A-rated excess coverage. Embroker’s 100% digital quoting experience allows users to add excess coverage to their standalone Tech E&O or Tech E&O + Cyber policies.
Luckily, Embroker accepts more than 30 primary insurance carriers, including insurtechs.
At a time where insurtechs are taking over an increasing stake in the business insurance market, Embroker’s ability to write over insurtechs is especially helpful. Embroker does just that, making the process of purchasing Excess coverage easy and efficient. Embroker is able to both match an existing limit or exceed it, depending on your risks and what you need.
What do I need to apply:
First, you’ll need either an underlying Tech E&O + Cyber policy or a standalone Tech E&O policy from a carrier other than Embroker. (Please note: Users are not eligible to purchase standalone Excess Cyber.)
Also, Embroker’s excess coverage cannot be written over an Embroker primary policy, meaning you need to have a primary Tech E&O and Cyber policy from another carrier before applying for Excess.
Documents required:
- Primary Quote Letter for your existing coverage(s)
- Primary Application for your existing coverage(s)
- Excess Quote Letter(s), if applicable
- Contact information (name, email, phone number) for the Applicant/Insured
Ready to start an application? Click here