Congratulations! Your business has just been awarded a contract with a Fortune 500 company. However, your excitement quickly turns into concern when you realize that the master Services agreement (MSA) requires you to have significantly higher limits of cyber insurance than you currently possess. Don't worry, this article will guide you through the process of obtaining the high limits required to satisfy your MSA and secure that big contract.

Why do big companies require high limits?

You might be wondering why large corporations demand such extensive coverage from smaller contractors like yourself. The answer lies in the ever-increasing risks and threats associated with cybersecurity today. A data breach or privacy violation can result in substantial financial losses and reputational damage for both parties involved. By requiring high limits of coverage, companies ensure there is sufficient insurance available to cover necessary notification costs and related claim expenses.

The challenge faced by brokers:

Unfortunately, many insurance brokers lack expertise in cyber insurance due to its relatively recent emergence as a specialized field. While they may be comfortable selling standard policies, customizing these policies or acquiring higher coverage amounts often leaves them perplexed. When approached about increasing policy limits for cyber insurance, most underwriters respond negatively – leaving brokers at an impasse.

Finding an expert solution:

To overcome this problem, it's crucial to seek out professionals who specialize in cyber insurance specifically. These experts understand the unique challenges associated with obtaining higher coverage amounts and can assist you effectively. BimaKavach understands the client's requirements and offers customized policies.

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Introducing "the tower":

One method frequently employed by experts is constructing what is known as "a tower." This refers to layering multiple policies on top of each other until desired coverage levels are achieved.

1.First layer - Primary Policy: The base layer typically provides initial coverage ranging between two to three million dollars.

2.Subsequent layers: Additional layers are then placed on top while following terms and conditions outlined by the primary policy. Each subsequent layer may also provide two to three million dollars in coverage until the required limit, such as ten million dollars, is reached.

3.Building out the limits: It might take multiple insurers (four or five or more) to build out the necessary limits through this tower structure.

Why work with an expert like BimaKavach?

1.Market access: BimaKavach has extensive market access in the marketplace, ensuring a wide range of options available for constructing your tower.

2. Expertise: Brokers who lack experience in cyber insurance may not be equipped to handle complex arrangements such as building a tower. An expert like BimaKavach possesses both market knowledge and coordination skills necessary to arrange layers effectively and cost-efficiently.


Securing high limits of cyber insurance is crucial when it comes to satisfying MSA requirements for big contracts. As threats continue to grow within the cybersecurity landscape, large companies are rightfully demanding higher levels of protection from their contractors. While most traditional brokers struggle with providing these higher limits, working with experts specializing in cyber insurance can help you construct a tower that meets your needs.

If you find yourself facing similar challenges or have any questions regarding this topic, don't hesitate to reach out to our experts. Their expertise can ensure you obtain comprehensive coverage while remaining compliant with MSA contracts. Remember, investing in robust cyber insurance is not just about meeting contractual obligations but also safeguarding your business against potential financial losses and reputational damage stemming from cybersecurity incidents.

Thank you for taking the time to read this article! If you found it helpful, please consider sharing it with others who might benefit from this valuable information as well.

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