Increased Cyber Threats Not Prompting More to Purchase Network Liability Policies
As the threat of devastating cyber attacks across all sectors continues to increase, the vast majority of companies (73 percent) have not purchased network liability policies, according to a Towers Watson survey.
Of those not having such policies in place, 37 percent say their own internal information technology departments and controls are adequate, while 15 percent either say the cost of a risk transfer solution is prohibitive, or that they aren’t overly concerned about the risk, Towers Watson says.
Of the 27 percent that have purchased network liability policies, Towers Watson says that the majority (61 percent) bought $10 million to $49.9 million limits; only 8 percent purchased $50 million or more. The median amount purchased was $10 million. While there was a wide range of reasons for how they arrived at the particular limit purchased, 36 percent say the limit was proposed by their broker, while 15 percent say they reviewed the level of the exposure with a third-party cyber risk management firm.