Every acquisition carries risk that the purchase price does not fully account for: an undisclosed tax liability, a dormant lawsuit, an environmental obligation inherited by the new owner. M&A insurance exists to transfer those risks off the balance sheet and onto an insurance policy, giving both buyers and sellers a cleaner exit. The market for these products has grown sharply, with North American primary R&W insurance premiums rising 16% year-over-year in 2025 as deal teams increasingly treat transactional risk insurance as a standard closing tool rather than a luxury reserved for billion-dollar transactions. This guide covers the core M&A insurance products: representations and warranties cover, tax indemnity, contingent liability policies, litigation buyout, and successor liability exposure. Whether you are a CFO evaluating your first acquisition or a general counsel structuring indemnity provisions, understanding how each product works, what it excludes, and how it interacts with due diligence will shape the quality of your deal.
The Strategic Role of M&A Insurance in Modern Deals
Transactional risk insurance has moved from a niche product to a fixture in middle-market M&A. Private equity sponsors drove early adoption, but operating companies with 50 to 500 employees now routinely consider coverage for deals as small as $10 million in enterprise value. The reason is straightforward: insurance replaces or supplements the seller's indemnity obligation, which means less money held in escrow and fewer post-closing disputes.
How Transactional Risk Insurance Bridges the Valuation Gap
Buyers and sellers rarely agree on the precise magnitude of unknown risks embedded in a target company. A buyer wants a large escrow and a long survival period for representations. A seller wants a clean break and full proceeds at closing. An R&W policy resolves this tension by shifting the indemnity risk to an insurer, allowing the escrow to shrink to a nominal amount, often 1% or less of the deal value. This mechanism has become a standard feature of competitive auction processes, where sellers can demand "no seller indemnity" bids and buyers can still protect themselves.
Buyer-Side vs. Seller-Side Policies
Most policies placed today are buyer-side. The buyer purchases the policy, names itself as the insured, and files claims directly against the insurer rather than pursuing the seller. Seller-side policies exist but are less common; they backstop the seller's indemnity obligation and pay out when the seller is called upon to indemnify. For a small or mid-market company making an acquisition, a buyer-side policy is almost always the correct structure because it eliminates the collectability risk of chasing a former owner who may have already distributed proceeds.
By: Caden Braly
Founder of Bloc Cyber Insurance
INDEX
The Strategic Role of M&A Insurance in Modern Deals
Deep Dive into Representations and Warranties (R&W) Insurance
Managing Specific Risks: Tax, Litigation, and Contingent Liabilities
Successor Liability and Post-Closing Protection
Comparing M&A Insurance Product Features
Key Trends Shaping M&A Insurance in 2026
Bloc Cyber and Its Licensed Producers Are Authorized to Place Cyber Coverage in All 50 U.S. States and The District of Columbia.
Cyber liability insurance covers the financial losses your business faces after a cyberattack or data breach. This page explains what the coverage includes, who needs it, what it costs, and how Bloc Cyber helps you get protected fast.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
Deep Dive into Representations and Warranties (R&W) Insurance
R&W insurance is the anchor product in the M&A insurance suite. It responds when a representation or warranty in the purchase agreement turns out to be inaccurate, causing the buyer to suffer a loss. Think of it as breach-of-contract insurance: if the seller represented that there were no pending tax audits and one surfaces six months after closing, the policy is designed to cover the resulting financial damage.
Standard Coverage Limits and Retention Structures
Policy limits typically range from 10% to 30% of the enterprise value, though larger deals can carry higher absolute limits. The retention, which functions like a deductible, is usually set at 1% of the enterprise value and often drops to 0.5% after 12 months. Premium rates have stabilized in the range of 2% to 4% of the policy limit for most middle-market transactions. A $50 million deal with a $10 million R&W policy might carry a premium of $200,000 to $400,000, plus underwriting fees.
Common Exclusions: What R&W Doesn't Cover
No R&W policy covers everything. Standard exclusions include known issues identified in due diligence, forward-looking statements or projections, purchase price adjustments and working capital disputes, pension underfunding, and certain environmental liabilities. Cyber-related representations present a growing area of concern. If the target company's data security posture was misrepresented and a breach follows the acquisition, the R&W policy may respond to the breach of representation, but it will not fund incident response or regulatory defense. That is where a standalone cyber liability policy becomes critical, and firms like Bloc Cyber can review the actual policy form to identify where the R&W coverage stops and the cyber coverage needs to begin.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
Some regulatory proceedings involve parallel tracks: the regulator's formal action and an internal investigation your company runs simultaneously. Shadow defense counsel represents your company's interests during the regulatory process without formally appearing before the agency. Monitoring counsel may be appointed under a consent order to oversee your compliance.
The costs for these roles can be substantial. Certain policy forms cover shadow counsel fees as part of the defense cost grant, while others exclude them entirely. Court-appointed monitors in state enforcement actions have generated significant fees that strain organizational budgets, and whether your policy responds to those costs depends on how the form defines "defense costs" and "regulatory proceeding."
Shadow Defense and Monitoring Counsel Roles
Managing Specific Risks: Tax, Litigation, and Contingent Liabilities
Not every deal risk fits neatly into an R&W policy. Certain exposures are too specific, too large, or too well-known to be covered under a general representations and warranties form. Standalone products exist to address each of these categories.
Tax Indemnity: Protecting Against Uncertain Tax Positions
Tax liability insurance covers a specific, identified tax risk: a position taken on a return that may not survive audit, a transfer pricing arrangement that could be challenged, or a sales tax nexus question. The tax insurance market closed 2025 with record-breaking growth, reflecting increased IRS scrutiny and the complexity of multi-state operations. Premiums typically run 3% to 7% of the insured tax amount, and policies can last seven years or longer to cover the full statute of limitations.
Litigation Buyout: Ringfencing Known Legal Disputes
When a target company has pending or threatened litigation, the buyer faces a binary problem: either reduce the purchase price to account for the worst-case outcome or find a way to transfer the risk. A litigation buyout policy does the latter. The insurer assumes the financial exposure of the identified lawsuit in exchange for a one-time premium. Capital commitments in the litigation finance sector rebounded 23% after a two-year contraction, which has expanded insurer appetite for these placements.
Contingent Liability: Covering 'Low Probability, High Impact' Risks
Some risks sit in a gray zone: they are known to exist but unlikely to materialize. A contract dispute that has not yet escalated to litigation, a regulatory inquiry that may or may not result in enforcement action, or a product liability exposure with no current claims. Contingent liability insurance covers these scenarios. The policy pays out if the contingency actually results in a loss, and pricing reflects the assessed probability, typically 5% to 15% of the potential exposure.
Real claims illustrate the exposure more clearly than abstract descriptions. Here are patterns that repeat across the technology sector:
- A SaaS company deploys a billing module that overcharges 12,000 end users over six months. The client demands $410,000 in restitution costs plus $150,000 in legal fees. The tech E&O form responds to the defense and indemnity obligation.
- An MSP fails to complete a server migration on schedule, causing a healthcare client to miss a compliance deadline. The healthcare company faces a regulatory fine and sues the MSP for $275,000. The policy form may respond, but only if the regulatory fine is not excluded as a penalty.
- A custom software vendor delivers an inventory management system that miscounts stock levels. The client loses $600,000 in downstream sales. The vendor's tech E&O policy covers defense costs and settlement, but a sublimit on the policy caps the payout at $500,000.
Average defense costs for technology professional liability claims range from $50,000 to $150,000 depending on complexity and jurisdiction. Settlement amounts vary widely, but six-figure demands are common even for small firms.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
| Coverage Element | Commercial General Liability | Cyber Insurance |
|---|---|---|
| Data breach notification costs | Not covered | Covered under first-party |
| Ransomware payment | Not covered | Covered (subject to sublimit) |
| Regulatory defense | Not covered | Covered under third-party |
| Business interruption from cyberattack | Not covered | Covered with waiting period |
| Funds transfer fraud | Not covered | Covered via cyber crime endorsement |
| Third-party lawsuit over data loss | Excluded or severely limited | Covered under third-party liability |
| Technology product failure | Not covered | Covered under Tech E&O |
How much does a typical PCI forensic investigation cost?
PFI engagements range from $20,000 for a simple, small-merchant investigation to $120,000 or more for complex environments with multiple locations or e-commerce platforms. The card brands dictate the scope, and the merchant pays.
Successor Liability and Post-Closing Protection
Acquiring a company means inheriting its obligations, including those the buyer did not know about at closing. Successor liability exposure is particularly acute in asset purchases, where buyers sometimes assume they are purchasing only specific assets and leaving liabilities behind. Courts in many jurisdictions apply exceptions: the "de facto merger" doctrine, the "mere continuation" theory, and product-line successor liability rules can all pull a buyer into the seller's pre-closing obligations. Environmental contamination, product liability claims, and employee benefit obligations are the most common sources of successor liability. Insurance products can cover these exposures, but they require careful structuring because the risk is often long-tail and difficult to quantify at the time of closing.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
No. A data breach or cyberattack is a cyber liability exposure, not a technology E&O exposure. You need a separate cyber liability policy form to cover breach response, notification costs, regulatory defense, and third-party claims arising from a security incident. Many technology companies carry both policies because the exposures are distinct.
FAQ: Does this cover me if I get hacked?
P2PE encrypts cardholder data from the point of interaction (the card reader) to the payment processor's secure decryption environment. A validated P2PE solution removes your systems from PCI scope for those transactions, which directly reduces both your compliance burden and your risk profile. Underwriters recognize P2PE as a meaningful risk reduction and may offer premium credits for merchants using validated solutions.
Implementing Point-to-Point Encryption (P2PE)
Comparing M&A Insurance Product Features
| Feature | R&W Insurance | Tax Indemnity | Litigation Buyout | Contingent Liability |
|---|---|---|---|---|
| Covers | Breach of reps/warranties | Specific tax position | Known pending litigation | Known but uncrystallized risk |
| Typical Limit | 10%-30% of deal value | Full tax exposure | Full case value | Assessed exposure amount |
| Premium Range | 2%-4% of limit | 3%-7% of insured amount | Case-specific | 5%-15% of exposure |
| Policy Term | 3-6 years | 7+ years | Until case resolution | Varies by risk type |
| Due Diligence Required | Full buy-side diligence | Tax opinion letter | Litigation analysis | Risk-specific review |
| Most Common Buyer | PE funds, strategic acquirers | Any buyer with tax risk | Buyers or sellers | Buyers or sellers |
Real claims illustrate the exposure more clearly than abstract descriptions. Here are patterns that repeat across the technology sector:
- A SaaS company deploys a billing module that overcharges 12,000 end users over six months. The client demands $410,000 in restitution costs plus $150,000 in legal fees. The tech E&O form responds to the defense and indemnity obligation.
- An MSP fails to complete a server migration on schedule, causing a healthcare client to miss a compliance deadline. The healthcare company faces a regulatory fine and sues the MSP for $275,000. The policy form may respond, but only if the regulatory fine is not excluded as a penalty.
- A custom software vendor delivers an inventory management system that miscounts stock levels. The client loses $600,000 in downstream sales. The vendor's tech E&O policy covers defense costs and settlement, but a sublimit on the policy caps the payout at $500,000.
Average defense costs for technology professional liability claims range from $50,000 to $150,000 depending on complexity and jurisdiction. Settlement amounts vary widely, but six-figure demands are common even for small firms.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
| Coverage Element | Commercial General Liability | Cyber Insurance |
|---|---|---|
| Data breach notification costs | Not covered | Covered under first-party |
| Ransomware payment | Not covered | Covered (subject to sublimit) |
| Regulatory defense | Not covered | Covered under third-party |
| Business interruption from cyberattack | Not covered | Covered with waiting period |
| Funds transfer fraud | Not covered | Covered via cyber crime endorsement |
| Third-party lawsuit over data loss | Excluded or severely limited | Covered under third-party liability |
| Technology product failure | Not covered | Covered under Tech E&O |
Will my policy pay for the fines if I'm not compliant?
This depends entirely on the policy form. Some forms cover PCI fines only if the merchant was making good-faith compliance efforts. Others exclude fines arising from known non-compliance. Read the exclusions carefully before binding.
How much does a typical PCI forensic investigation cost?
PFI engagements range from $20,000 for a simple, small-merchant investigation to $120,000 or more for complex environments with multiple locations or e-commerce platforms. The card brands dictate the scope, and the merchant pays.
What is the difference between a fine and an assessment?
A fine is a penalty for non-compliance with PCI DSS standards. An assessment is a cost-recovery mechanism: the card brands and issuing banks recoup their actual losses (fraud charges, card replacement costs) from the breached merchant. Both are financial obligations, but they arise from different triggers and may be treated differently under a policy form.
Key Trends Shaping M&A Insurance in 2026
The M&A insurance market has entered a period of increased claims activity. Global claims frequency has risen as the market matures and more policies reach their survival periods. Tax and compliance-related claims are now the fastest-growing category, driven by regulatory changes and cross-border complexity. Cyber representations are receiving heightened underwriter scrutiny, with many insurers requiring evidence of a standalone cyber program before they will cover technology-related warranties. For small and mid-market buyers, this means that your cyber liability posture directly affects the terms and pricing of your R&W policy. Having a properly placed cyber program, one reviewed at the insuring-agreement level rather than purchased as a bundled product, can make a material difference in your transactional insurance outcome. That is precisely the kind of form-level review that a specialist like Bloc Cyber performs before binding.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
No. A data breach or cyberattack is a cyber liability exposure, not a technology E&O exposure. You need a separate cyber liability policy form to cover breach response, notification costs, regulatory defense, and third-party claims arising from a security incident. Many technology companies carry both policies because the exposures are distinct.
FAQ: Does this cover me if I get hacked?
P2PE encrypts cardholder data from the point of interaction (the card reader) to the payment processor's secure decryption environment. A validated P2PE solution removes your systems from PCI scope for those transactions, which directly reduces both your compliance burden and your risk profile. Underwriters recognize P2PE as a meaningful risk reduction and may offer premium credits for merchants using validated solutions.
Implementing Point-to-Point Encryption (P2PE)
Common Questions About M&A Insurance
How much does a typical R&W policy cost?
Premiums generally fall between 2% and 4% of the policy limit. For a $15 million policy on a mid-market deal, expect to pay $300,000 to $600,000, plus underwriting fees of $25,000 to $50,000. Rates vary by industry, deal complexity, and the quality of due diligence.
Does insurance replace the need for due diligence?
No. Underwriters rely on the buyer's due diligence to assess risk and price the policy. Gaps in diligence typically result in broader exclusions or higher retentions. A thorough diligence process actually improves your policy terms.
Who usually pays the premium, the buyer or the seller?
On buyer-side policies, the buyer pays the premium in most cases. That said, the cost is often factored into the overall deal economics, and sellers sometimes agree to share or reimburse the premium as part of negotiations.
How long does it take to get a policy underwritten?
A standard R&W policy can be underwritten in two to three weeks from the time the underwriter receives the diligence materials and draft purchase agreement. Expedited timelines of seven to ten days are possible for straightforward transactions with experienced brokers and clean diligence.
Can I get coverage for a deal that has already closed?
Yes, but with limitations. Some insurers will consider "staple" or post-closing placements, though the underwriting process is more intensive, and pricing is typically higher. The window for post-closing placement is usually six to twelve months.
Real claims illustrate the exposure more clearly than abstract descriptions. Here are patterns that repeat across the technology sector:
- A SaaS company deploys a billing module that overcharges 12,000 end users over six months. The client demands $410,000 in restitution costs plus $150,000 in legal fees. The tech E&O form responds to the defense and indemnity obligation.
- An MSP fails to complete a server migration on schedule, causing a healthcare client to miss a compliance deadline. The healthcare company faces a regulatory fine and sues the MSP for $275,000. The policy form may respond, but only if the regulatory fine is not excluded as a penalty.
- A custom software vendor delivers an inventory management system that miscounts stock levels. The client loses $600,000 in downstream sales. The vendor's tech E&O policy covers defense costs and settlement, but a sublimit on the policy caps the payout at $500,000.
Average defense costs for technology professional liability claims range from $50,000 to $150,000 depending on complexity and jurisdiction. Settlement amounts vary widely, but six-figure demands are common even for small firms.
We start with a twenty-minute call to walk through your contracts, your draw process, your tech stack, and the last twelve months of attempted fraud. From there we go to market with ten-plus carriers, benchmark terms side-by-side, and present the options in plain language with recommended limits and retentions. Most intakes get indicative terms within one business day.
| Coverage Element | Commercial General Liability | Cyber Insurance |
|---|---|---|
| Data breach notification costs | Not covered | Covered under first-party |
| Ransomware payment | Not covered | Covered (subject to sublimit) |
| Regulatory defense | Not covered | Covered under third-party |
| Business interruption from cyberattack | Not covered | Covered with waiting period |
| Funds transfer fraud | Not covered | Covered via cyber crime endorsement |
| Third-party lawsuit over data loss | Excluded or severely limited | Covered under third-party liability |
| Technology product failure | Not covered | Covered under Tech E&O |
Will my policy pay for the fines if I'm not compliant?
This depends entirely on the policy form. Some forms cover PCI fines only if the merchant was making good-faith compliance efforts. Others exclude fines arising from known non-compliance. Read the exclusions carefully before binding.
How much does a typical PCI forensic investigation cost?
PFI engagements range from $20,000 for a simple, small-merchant investigation to $120,000 or more for complex environments with multiple locations or e-commerce platforms. The card brands dictate the scope, and the merchant pays.
What is the difference between a fine and an assessment?
A fine is a penalty for non-compliance with PCI DSS standards. An assessment is a cost-recovery mechanism: the card brands and issuing banks recoup their actual losses (fraud charges, card replacement costs) from the breached merchant. Both are financial obligations, but they arise from different triggers and may be treated differently under a policy form.
Making the Right Choice for Your Transaction
M&A insurance is not a single product but a toolkit. The right combination of R&W coverage, tax indemnity, and contingent liability protection depends on the specific risks your deal presents. Start by identifying the exposures that your due diligence has surfaced, then work with a broker who understands how each policy form responds to those risks.
One area that consistently falls through the cracks in deal planning is the intersection of transactional risk and operational insurance. Your R&W policy may cover a breach of the seller's cybersecurity representations, but it will not pay for forensic investigation, notification costs, or regulatory defense after a data breach. If you are acquiring a company with customer data, healthcare records, or payment card information, a standalone cyber liability policy is not optional. Bloc Cyber's team can walk through the policy form with you to confirm that your post-closing insurance program covers what the transactional policies do not. If you are preparing for a transaction and want a specialist to
review your coverage, a brief conversation before closing can prevent an expensive gap from becoming a claim.
ABOUT THE AUTHOR
Caden Braly
— Founder, Bloc Cyber
I'm Caden Braly, founder of Bloc Cyber, the specialty cyber insurance arm of Braly Insurance. I built Bloc Cyber around one idea: businesses deserve coverage that actually responds when a cyberattack happens. I work closely with clients to understand their exposure, place the right policy through specialty carriers, and stand with them through the claim. My goal is simple — give every business straight answers and protection they can trust.
Full profile → caden@bloccyber.com LinkedIn
Industries We Protect
Cyber Coverage Built for Your Industry
Every industry faces a different cyber threat, from patient records in healthcare to wire fraud in construction. Bloc Cyber matches coverage to the risks your sector actually faces, drawing on specialty carriers that understand your business. Find your industry below to see how we protect it.
Healthcare
Banking
Retail / E-Commerce
Legal
Technology / SaaS
Education
Energy / Utilities
Manufacturing
Construction
Defense
Healthcare
HIPAA-grade protection for patient data
725
healthcare breaches disclosed in 2024
HIPAA-grade protection for patient data
▣ Ransomware on EHR systems
▣ PHI exfiltration
▣ Medical device exploits
▣ Business email compromise
Sub-sectors we place
Hospitals and health systems
Physician practices and specialty clinics
Dental practices and DSOs
Behavioral health and addiction treatment centers
Medical billing and revenue cycle management firms
Typical turnaround for indication of terms: 1 business day.
Banking
Coverage that meets FFIEC and NYDFS expectations
$5.9M
average cost of a financial sector breach
Common threats we underwrite against
▣ Wire fraud and BEC
▣ Credential stuffing
▣ Third-party vendor risk
▣ Ransomware
Sub-sectors we place
Community banks
Credit unions
Mortgage lenders and loan originators
Wealth management and RIAs
Payment processors and merchant acquirers
Typical turnaround for indication of terms: 1 business day.
Retail / E-Commerce
PCI-DSS aligned coverage for every checkout
42%
of retailers hit by ransomware in the last year
Common threats we underwrite against
▣ Magecart / card skimming
▣ POS malware
▣ Account takeover
▣ Supply-chain intrusion
Sub-sectors we place
Direct-to-consumer (DTC) brands
Shopify and marketplace sellers
Brick-and-mortar multi-location retailers
Restaurants and QSR franchises
Grocery and specialty food retail
Typical turnaround for indication of terms: 1 business day.
Legal
Privilege, client files, and trust-account safeguards
1 in 4
law firms reported a breach in 2024
Common threats we underwrite against
▣ Wire-transfer fraud
▣ Privileged data theft
▣ Email account compromise
▣ Ransomware
Sub-sectors we place
AmLaw / large firms
Boutique litigation firms
Personal injury and plaintiffs’ firms
Estate planning and trust attorneys
Title and real estate closing firms
Typical turnaround for indication of terms: 1 business day.
Technology / SaaS
SOC 2 and ISO-aligned risk transfer
$4.88M
avg. cost of a SaaS breach in 2024
Common threats we underwrite against
▣ Supply-chain attacks
▣ Cloud misconfiguration
▣ Token and key theft
▣ Zero-day exploits
Sub-sectors we place
B2B SaaS platforms
Managed service providers (MSPs) and MSSPs
Fintech startups
AI and machine learning companies
Cloud hosting and infrastructure providers
Typical turnaround for indication of terms: 1 business day.
Education
FERPA-aligned coverage for student and research data
80%
of K–12 districts hit by ransomware since 2022
Common threats we underwrite against
▣ Ransomware on district networks
▣ Student PII theft
▣ Fake invoice fraud
▣ DDoS on exam platforms
Sub-sectors we place
K-12 public school districts
Private and charter schools
Colleges and universities
EdTech platforms
Tutoring, test prep, and online learning providers
Typical turnaround for indication of terms: 1 business day.
Energy / Utilities
OT and IT coverage for critical infrastructure
24/7
operational-tech monitoring requirements
Common threats we underwrite against
▣ ICS/SCADA intrusion
▣ Nation-state actors
▣ Ransomware on OT
▣ Insider threat
Sub-sectors we place
Municipal utilities (water, electric, gas)
Oil and gas operators
Pipeline and midstream companies
Renewable energy (solar, wind) developers
Electric cooperatives and rural utilities
Typical turnaround for indication of terms: 1 business day.
Manufacturing
Business interruption protection for connected plants
25%
of all ransomware attacks target manufacturing
Common threats we underwrite against
▣ Ransomware halting production
▣ IP theft
▣ ICS exploits
▣ Vendor compromise
Sub-sectors we place
Industrial and heavy equipment manufacturers
Food and beverage processing
Pharmaceutical and medical device manufacturers
Automotive and parts suppliers
Aerospace component manufacturers
Typical turnaround for indication of terms: 1 business day.
Construction
Protection for project files, wires, and jobsite tech
$200K+
average wire-fraud loss in construction
Common threats we underwrite against
▣ Wire-transfer diversion
▣ BEC on project payments
▣ Stolen bid data
▣ Ransomware
Sub-sectors we place
General contractors
Commercial HVAC, electrical, and plumbing subs
Civil and infrastructure contractors
Homebuilders and residential developers
Architecture and engineering (A&E) firms
Typical turnaround for indication of terms: 1 business day.
Defense
CMMC, DFARS, and CUI-compliant risk transfer
CMMC
2.0 compliance required by 2026
Common threats we underwrite against
▣ CUI exfiltration
▣ Nation-state APTs
▣ Supply-chain compromise
▣ Cleared-personnel targeting
Sub-sectors we place
DoD prime contractors
CMMC-regulated subcontractors
Defense software and systems integrators
Aerospace and satellite contractors
Federal IT and cleared staffing firms
Typical turnaround for indication of terms: 1 business day.
The Bloc system
One foundation.
Ten industry-specific builds.
The Bloc mark is built from stackable planes — each one a different angle on the same core structure. That’s how we place coverage: one underwriting discipline, tuned and re-tuned for every industry we serve.
Coverage
A policy you can actually read.
Structured in three clean blocs.
01
First-Party
Your direct losses when an incident hits your business.
✓
Incident response & forensics
✓
Business interruption
✓ Data restoration
✓ Cyber extortion / ransomware
✓ Funds transfer fraud
✓ Reputational harm
02
Third-Party
Your liability to clients, partners, and regulators.
✓
Network security liability
✓
Privacy liability (HIPAA, GDPR, state laws)
✓ Regulatory defense & fines
✓ PCI-DSS fines and assessments
✓ Media liability
✓ Breach notification costs
03
Specialty
Advanced coverages for complex risks and contracts.
✓
Technology E&O
✓
Social engineering fraud
✓ Contingent business interruption
✓ Systems failure
✓ Bricking & hardware replacement
✓ CMMC / regulatory-specific endorsements
Typical limits placed
$1M / $1M starter
$5M / $10M mid-market
$25M+ layered towers
Custom retentions
Common Questions
Cyber Liability Insurance, Explained
What does cyber insurance cover?
Cyber insurance covers the financial losses from a data breach or cyberattack. This includes breach response, legal fees, customer notification, ransomware, business interruption, and regulatory fines, depending on your policy.
Does my business really need cyber insurance?
Yes. Any business that stores customer data, processes payments, or relies on connected systems faces cyber risk. Small and mid-sized companies are frequent targets because they often have fewer defenses.
How much does cyber insurance cost?
Cost depends on your industry, revenue, data volume, and security practices. We market your risk to multiple carriers to find strong coverage at a competitive price. Request a quote for an exact figure.
What is the difference between first-party and third-party cyber coverage?
First-party coverage pays for your own losses, like data recovery and lost income. Third-party coverage pays for claims from others harmed by a breach on your systems.
How fast can I get a quote?
Most clients receive a quote in under 24 hours after we review the details of their business and exposure.
What should I do first after a cyberattack?
Contact us right away. We help you start breach response, connect you with forensic and legal support, and guide your claim so you contain the damage quickly.
Insights
Field notes from the placement desk.
What carriers are asking right now.
Start a quote
Tell us about your business.
We’ll come back with terms.
We’ll review your stack, your contracts, and your exposure — then place the program against the right markets. Most intakes get indicative terms back within one business day.
01
Quick intake
We only ask what the carriers actually need.
02
Benchmark
Side-by-side terms from 10+ specialty cyber carriers.
03
Bind
Plain-language policy review, e-signed and in force.
