With high-profile, high-cost data breaches continuing to make news on a regular basis, it's not surprising that there has been a spike in interest in Cyber Liability coverage. Yet that interest isn't always translating into increased sales, in part due to a lack of understanding of the exposures by, ironically, those who could be most at risk.
"It's still not an easy sale," says Brian Thornton, president of ProWriters, a managing general underwriter specializing in Professional Liability coverage."On the plus side, there has been more education from both a broker and underwriter standpoint, but there is still some resistance [among potential buyers]."
Indeed, not all companies have taken this risk seriously enough to ensure their coverage is adequate to cover a major loss. Despite reported double-digit growth among brokers and insurers offering coverage, Cyber remains a relatively small market: A.M. Best reports that 86% of carriers don't offer the coverage exclusively—bundling it into other types of cover, like General Liability—and, in a November 2014 survey conducted by Hanover Research for ISO, the majority of Cyber insurers write less than $10 million in premium.
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