Cyber Risk Insurance Need

Cyber Risk Insurance is widely available and inexpensive, but not enough companies are buying the protection.  As noted in a recent survey by Towers Watson,the majority of companies do not buy the coverage.  The survey of 164 risk and finance managers found that 73% have not purchased network liability policies. 

This survey was focused on larger companies, and we believe the uninsured number is much higher if small companies are included.  One estimate of the percentage of companies without Cyber risk coverage is 80-90%, but our experience indicates that the number is likely in excess of 90%.

The obvious exposure is loss of data from hackers.  However, the majority of breaches are the result employee errors – lost laptops & thumb drives.  And sometimes these breaches can be extremely expensive due to the large volume of data residing on the lost media.

Technology Coverage encompass a range of exposures.  Some are specifically tailored, and others are broader.  More information is available on the Technology page of our web site.  Often these coverages are combined in one policy – which we call Cyber Risk– but sometimes the forms are not quite as comprehensive.

The names used to describe the coverage can be confusing as well, which is why we use the term cyber risk.  Some of the names used to describe these Coverages include cyber liability, data breach, privacy, hacker coverage, network liability and technology E&O