Water and wastewater systems are becoming high-interest targets for both digital attackers and insider threats. As operations become more connected and legacy infrastructure remains in use, the risk isn’t just growing — it’s evolving.
For insurance agents serving these clients, it’s time to think beyond traditional coverage. Employee fidelity, cybercrime, and cyber liability insurance should be essential components of every utility client’s risk strategy.
Water Systems Are Prime Targets
Many small and mid-sized water utilities operate with limited IT resources and aging systems, leaving them vulnerable to phishing, ransomware, and unauthorized access. A single compromised password or unchecked email can bring operations to a halt.
Recent incidents, like the Russian-linked cyber breach of a Texas water-treatment facility, underscore how real the threat is. It’s not just isolated; these attacks increasingly target smaller systems, knowing they often lack the tools to defend or recover quickly.
If you advise these clients, cyber protection shouldn’t be considered an extra. It should be part of the standard package.
What Employee Fidelity Covers
Cybersecurity isn’t only about outside threats. Internal fraud can be just as damaging. Employee fidelity insurance protects against losses caused by theft, embezzlement, forgery, and similar acts committed by employees.
Watercolor Management’s program is designed for the water sector, covering exposures like misappropriated funds, stolen inventory, and fraudulent transfers. Agents gain access to industry-specific claims expertise and risk consulting, giving their clients more than just coverage — they get support from people who understand their business.
Cyber Liability for External Threats
Cyber threats like ransomware, phishing, and cyber extortion are now daily risks for water utilities. Cybercrime and cyber liability insurance help cover costs associated with the exposures below:
- System restoration
- Legal defense and settlements
- Regulatory fines and breach notifications
- Business interruption
- Fraudulent fund transfers
These policies typically combine first-party protection (covering the business’s direct losses) with third-party liability (covering claims from outside parties).
WaterColor Management enhances this with a 24/7 Cyber Breach hotline and flexible coverage limits from $100,000 to $5 million. Some endorsements even extend to owners’ personal losses, depending on underwriting approval.
Why Agents Should Act Now
Bundling crime and cyber protection is an effective way for agents to stand out and provide real value. With premiums starting at just $500 and flexible bundling options, it’s a practical upsell that delivers real value.
When you help clients protect themselves from both external and internal threats, you’re not just a policy writer. You become a strategic partner.
Smart Coverage for Modern Risks
Pairing employee fidelity with cybercrime and cyber liability coverage equips water and wastewater clients to handle today’s most critical digital and financial risks without overcomplicating their insurance strategy.
With exclusive underwriting authority, top-rated carrier access, and decades of sector experience, Watercolor Management gives agents the tools to deliver protection that fits the water industry’s realities.
Call us today to learn how we can help you protect your water clients with tailored crime and cyber coverage that truly works.
About WaterColor Management
WaterColor Management has insured the water industry for over 30 years. Our policies include unlimited defense cost coverage in the event of a lawsuit against you. Call us at (855) 929-0824 or email info@watercolormanagement.com for a quick quote for your Water Business Professional, Products/Completed operations, Pollution, and General Liability Insurance.