Cyber insurance isn’t just a cost of doing business, it’s a lever for protecting returns.
Let’s cut to it: Cyber risk isn’t just an IT problem anymore, it’s a Board problem. It can spook buyers and complicate exits. If you’re overseeing 15-30 PortCos, you know that one bad incident at one sleepy PortCo. can blow back on the entire portfolio.
That’s why more PEGs are thinking about cyber insurance not as a “checkbox,” but as a strategic lever. Done right, it protects deal value and carry. Done wrong, it becomes a cost center that quietly leaks value year after year.
So, let’s talk about how to get it right.
What to Look for in a Carrier
Not all cyber insurance is created equal.
Let me guess: your broker sent your PortCo CFO a glossy PDF, everyone nodded, and the policy got signed… Fast-forward to a breach, and suddenly you’re on hold with someone who last read your policy the day it was written.
Here’s what I tell my clients: focus on high quality carriers who partner with top-tier incident response and legal teams. If the house is on fire, you want firefighters who know what they’re doing, not interns with a garden hose.
Also: Social Engineering Fraud Limits are finally becoming more in line with actual exposure (well above the old $250K cap), but not all carriers offer it by default. Ask the right questions. Read the exclusions. And if a carrier has a reputation for foot-dragging or fighting every claim (and, yes, I take notes and will share them with you)? Hard pass.
Managing Insurance in the Deal Lifecycle
Smart strategies for buy-side negotiations and post-close coverage.
These days, cyber insurance isn’t just a line item in your closing checklist, it’s woven into the fabric of modern deal structures. Especially with reps & warranties insurance playing a bigger role, you’d better believe underwriters are digging into the cyber hygiene of the target.
If a PortCo. can’t show basic “Top 7” controls like MFA, endpoint protection, training (read more about this in my Cyber Poverty Line post) you’re going to see carve-outs or exclusions in the coverage. That’s code for “you’re on the hook if something breaks.”
The fix? Get ahead of it. Before you close, bring in someone to assess the cyber posture and identify any red flags. After you close, use that same intel. to clean things up and make sure you’re not inheriting someone else’s mess.
How Black Creek Can Help
We help you buy the right coverage and avoid surprises.
At Black Creek, we don’t sell insurance but we can help our PEG client buy smarter. That means working alongside your deal team to assess cyber posture before acquisition, then helping you dial in the right coverage after the close.
I’m carrier-agnostic. I don’t get kickbacks or push products. My only goal is to make sure cyber risk doesn’t quietly eat into your IRR and also that you get great value for money.
I’ll work on your behalf with your broker, outside counsel, and even the carrier if needed, so you don’t have to become a cyber policy wonk overnight. (Trust me, no one wants that.)
Protect your upside, before it’s exposed.
If you’re not feeling confident that your portfolio is appropriately insured against the right risks, or that your targets won’t blow a hole in your next deal, it might be time to talk.
Let’s schedule an obligation-free 30-minute consult to pressure-test your insurance strategy.
Or, if you just want to dip a toe in, I can help you with a cyber insurance readiness checklist that you can use across your PortCos.
Either way, let’s make sure you’re not insuring the wrong thing, or paying too much for something that won’t pay out when it matters.