Cyber insurance

This is NOT a recommendation.  Just sharing some info I just received and also would welcome some feedback.  I'm also at a fork.

For over 30 years, I've used AON (associated with AICPA) thru a broker in the Bay Area, California. The policy included a rider for cyber coverage.  The broker just informed me it's not continuing with AON.   I'm now weighing among AON, Camico and the firm recommended by the broker, McGowan Program Administrators.  In general, I'm nervous about the "fine prints" in insurance policies, and incline to stick with "the big group" associated with CPAs - AON or Camico.

I don't know if you're a CPA, or whether the program is available to tax professionals other than a CPA.  For what it's worth, this was sent to me from the broker, with respect to cyber insurance:

McGowan is providing $1,000,000 Privacy & Security (up from the 100K you currently have), $75,000 Ransomware coverage (up from $15K) and also providing $50,000 Employment Practice Liability and Discrimination Coverage. First Dollar Defense (FDD) is being provided which means you don’t need to pay a deductible if there is a claim and only defense cost are paid by the carrier (you don’t have with your current policy through AON). You will continue to have 1/1/xxxx as your Prior Acts date so that past work remains covered.

• Subpoena Expenses : Unlimited subpoena expense coverage. Deductible does not apply when reporting a subpoena. Attorney/CPA on retainer that will do an initial review and make recommendations for legal counsel within 48 hours
• Definition of Professional Services : Broad definition of professional services; can include investment advisory services, business valuation, litigation support, life agents coverage, trustee/executor, other consulting services
• IRS Fines and Penalties Coverage Enhancement : CPAOnePro provides up to $50,000 for IRS Penalties IRC 7216 and Internal Revenue Code Sections 6694 & 6695(a)
• Pre-Claim Assistance :Provides insureds with guidance to mitigate matters that can develop into claims
• Loss Control Hotline : Assists accountants with advice on claim intervention, appropriate language for engagement letters or client contracts, and maintaining client relationships
• Claims Triage Service : Used to quickly assess the attributes of a subpoena, incident, or claim
• Use of Engagement Letter Deductible Incentive: Will waive the deductible 50% up to $25,000 per claim and $50,000 for the policy period when an engagement letter is used
• Loss of Earnings for Trial appearance: CPAOnePro provides one of the highest reimbursement of earnings in the industry with $1,250 per day with a max of $100,000 per policy
• First Dollar Defense (FDD):  If a claim is made against you and there are no damages and only defense cost, you don’t have to pay your deductible.
• Regulatory/Disciplinary Matters Coverage: The CPAOnePro provides $50,000 per incident with a $100,000 aggregate for Defense Expenses for costs incurred responding to a Disciplinary Proceeding or a Regulatory Event.

AGAIN, THIS IS NOT A RECOMMENDATION OR ADVERTISING.  I'M JUST AS CONFUSED AS I CAN BE.

Time for some bourbon....

@Colmatt1 @joshuabarksatlcs @IRonMaN may be a good idea to ask your insurance provider whether they cover IRS penalties related to due diligence for earned income tax credit, CTC,  HOH,  and so forth, assessed against tax preparers by IRS..... IMHO, This may be more of a potential future liability than being sued by a client... I asked (since I am a nerd) and the answer was "generally" they do, but of course then came the disclaimer, so not really sure... best insurance policy is to be very conservative, and do everything exactly correct.... and get rid of PIA clients. ....Just my opinion...🤓🐕

Our agent told us the cyber policy premiums have skyrocketed. (Wonder why?)

Nevertheless, your premium seems high for your business. We do more tax returns plus we do 401(k) Plan audits where we have lots of SSNs plus other audit and consulting work. It is my understanding a lot of the cost is how much sensitive info you have.

We have used Hiscox and Berkley for Cyber insurance.