Embroker launches Tech Errors & Omissions

Digital business insurance platform Embroker is launching a new Excess Tech Errors & Omissions (E&O) product, promising to speed up the process of getting this coverage and increasing its capacity for these policies.

To serve businesses that have to build towers of several policies for different risks to have complete coverage, insurance brokers can use Embroker's Excess Tech E&O to complete these towers faster, according to David Derigiotis, chief insurance officer at Embroker.

"It's efficient, being able to go in, in just a couple of minutes, generate a quote that they can then bring back and present to their client or use to go to other carriers to continue building up the tower," he said.

Brokers also need greater capacity to communicate information to one carrier after another as they build coverage towers piece by piece. "It's a very tedious and lengthy process," Derigiotis added.

Excess Tech E&O can source excess coverage with a limit of $5 million. A business may need to build coverage up to $100 million out of policies for $5 million or less. Embroker's product automates this process. 

"Before insurtech innovations, our job as brokers was largely manual," said Carrie Ligocki, broker at RLA Insurance Intermediaries, in a press release. "This new digital option brings a speed and ease-of-use that is hard to beat. It allows me to quickly manage rush submissions without having to wait several days for a quote, which is my favorite feature of this new digital offering."

Embroker developed Excess Tech E&O by creating a method to rate layers, based on a marketplace analysis of loss ratios and trends for tech, E&O and cyber insurance coverage. 

"We also got an analysis of underwriting done across the broader marketplace," Derigiotis said. This included what carriers' questions are, what the exclusions are in policies, and where coverage has changed. "We put a lot of groundwork into understanding the marketplace, what's being done and how to effectively price and apply coverage to this product," he said.

Wholesale brokers with surplus lines licenses may use Excess Tech E&O and its related Cyber offering. Separately, Embroker is enhancing its Tech E&O Cyber coverage to include cyber crimes such as cryptojacking, fund transfer fraud and "bricking," meaning malware installation.