Cover Agency,Ltd
Wholesale Admitted & Excess
Standard & Non-Standard "Hard To Find"
Property & Casualty Insurance




1. A  shared healthcare medical system database and program, used by doctors and medical facilities, (ie cloud database), is damaged or destroyed; it contains the medical history information for every patient that most doctors in a community need to diagnose and treat patients in their office or at the hospital. The information in the data bank is missing, due to a failure caused by an attack (or some sort of unintentional electrical system failure). The back-up system is damaged too, from the electrical system failure or other still undiagnosed problem ; loss of use is for at least three weeks.  Meanwhile each doctor has employee payrolls (other doctors on staff, nurses, technicians ,  equipment leases, rent, electricity, etc,) and lost medical fee revenue; reason doctors will not have medical records available, which might result in incorrect diagnosis or treatment, and therefore  cannot see most patients and provide proper care. However,  but bills must still be paid to stay in business. Of course all profits for the period are also lost. Expenses and lost profits would be reimbursed if the doctors or medical facilities had purchased Cyber First Party Indirect Contingent Business Interruption Insurance, from a company that provides that coverage. Note that we provide this coverage from one of the most prestigious and respected insurance companies in the world, with a substantial commission rate.

2.  An online mortgage lender's  mortgage application legal disclosures system, using data accessed from a remote system, that is required by federal law for a mortgage lender to use to disclose financial information to a mortgage loan applicant at inception, or to store information,  process and underwrite mortgage applications, fails in California interfering with the mortgage lender's ability to do business in New York City and 40 additional cities. All loan approvals and closings are frozen for a month. Legal computations of federal and state required disclosures are shut down, and company must close its doors until systems are up and running again. Payroll consists of 100 highly skilled lender employees to be paid weekly; lender can't afford to lay them off because the company can't replace them in a reasonable period of time  (Therefore company must continue to carry the payroll while closed, with no revenue being received). Additional accumulated expenses are very substantial: plus lost profits, of course. Only coverage would be First Party Cyber Indirect Business Interruption Insurance to pay the the lender's  expenses and reimburse lost profits for the month.

3. An attorney's cloud database which contains his legal documents prepared on behalf of his clients, (ie "legal papers are work products"); he handled the clients lawsuits and contract work, including patents and business transaction agreements; all suddenly unavailable because the cloud storage system has failed and remote data  access has failed, at its source for 3 to 4  weeks, despite the claim of a "back-up system".  What happened he hasn't a clue. His law practice can't afford to carry its legal and paralegal employee payroll without borrowing, plus all  other expenses, and concerns about not having sufficient Professional Liability Insurance since it could make a mistake without access to their database, and the expensive legal staff it employs. Go ahead sell them both policies. Now that would be a good days work! You definitely should suggest to him he purchase enough  Indirect Business Interruption Insurance  to cover his possible lost profit too. You would be doing him a mutually advantageous favor, if a claim occurs.

4.  A real estate investment company's ongoing information about its ten owned multifamily investment properties, the rents current and past history and collections status, and additional accounting information about its tenants and its overall operations has disappeared off the outside company's third party owned cloud server for a month. Company is connected into a software and data provider that is working on the problem for 3 weeks. Imagine the lost revenue that can't be tracked plus daily expenses for payroll, etc. and lost profits of course. Boy is this insured glad he purchased Cyber First Party Indirect Business Interruption Insurance from you. Think you might have a chance at writing all his Lessor Risk business too? We have a really strong package for their ten apartment buildings. Probably you now have a real possibility of shortly writing those ten buildings  Lessor Risk Coverage too. 

5.  A supermarket chain's wholesaler source of fresh food has shut down their sales and shipping departments, due to "temporary cyber software failures" eliminating the internet access it needs to properly manage and control the retail stores,  at their places of business; the supermarket chain was dependent upon accessing its daily cloud inventory status of existing products for sale and schedules for new deliveries, and its cash flow forecasting tools which are with an online accounting software service; its stored inventories are updated daily, and are contained in the outside provider's software; impossible to access the chain's order database of anticipated deliveries dates previously ordered, including orders for hundreds of food products; lack of anticipated delivery dates which the chain was dependent upon was contained in the wholesaler's cloud information system. The wholesaler's  tracking system  was connected into supermarkets accounts payables in the  accounting department so the company can forecast its cash flow and ability to pay bills, earn profits, etc

Supermarket chain's 35 stores must cease selling fresh produce, meats, poultry, seafood, until a new source with adequate technology is located and contracted with. Canned goods they are counting every day with additional employees payroll expenses. Indirect Business Interruption Insurance would have been a real help, but no broker solicited them for it. Some broker missed a really good sale! 

Can you now figure out what items can be added together in assisting claims preparations? If you can, the top management will now have two reasons to turn over the entire account! 35 stores, vacation in Rio or Paris?

In the supermarket example, effectively this loss of supplier's services via the internet impairs the ability of the insured to operate its business and can quickly use up the insured working capital since his employees must be paid, almost all other standard operating expenses must be paid, and its anticipated profits are lost. The insured is simultaneously being squeezed from two directions.  It's a real practical example of a substantial middle market business problem that can occur. It may even drive the chain out of business, as its working capital would quickly dissapate, if it hadn't purchased the Cyber First Party Indirect Business Interruption Insurance you sold them.
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