As risk management advisors, our job is to help our clients identify their exposures to loss and make certain their insurance program is appropriate. We don’t recommend our clients purchase every coverage available, but we do suggest that they know the exposure exists. There are however, several coverages which, if you have not considered them, should be considered now.

Water Damage: Are you tired of hearing about El Nino? If you live anywhere near the west coast I’m guessing the answer is yes! Well it’s just beginning. If the prognosticators are correct the mother of all El Nino’s is going to hit this year. Most property policies only include limited coverage for water damage. Nearly all exclude damage caused by flood, and seepage of water in to a structure and surface water are also common exclusions. While some policies may include coverage for water that backs because sewers and drains are clogged or can’t handle the flow of water, this coverage is usually sub-limited.

Cyber: The fastest growing coverage area, the creativity of Cyber thieves continues to evolve. Claims range from first party property damage (computer systems) to extortion to third party liability. The complexity of cyber exposures continues to escalate and every policy is different. It’s not if your company will have a cyber claim, it’s when.

Cyber Crime: Related to Cyber, coverage is found under a crime policy. 10 years ago these exposures were not on the radar:

• Computer Fraud covers direct loss resulting from theft through the use of any computer system. Put another way, the use of a computer to fraudulently cause the transfer of property.
• Funds Transfer Fraud covers fraudulent instructions issued to a financial institution directing that institution to transfer, pay or deliver money from an account maintained by an insured.
• Social Engineering-the newest coverage on the block, but one of the oldest exposures, this covers situations where an insured is fraudulently induced to voluntarily transfer funds to a third party.

All three of these coverage areas are complex. If you have the coverage but have questions, call your broker. If you are not sure if you have these coverages, call your broker. If you know you don’t have these coverages but would like to find out the cost of the coverage call your broker. When in doubt? Call your broker.