Specialty Insurance Blog

Cyber Risk Insurance Need

Cyber Insurance is widely available and inexpensive, but not enough companies are buying the protection. As noted in a recent survey by Towers Watson (see here), 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 Insurance 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... Read more →

Cyber Risk Insurance & Recent Breaches

Cyber Insurance is widely available and inexpensive, but not enough companies are buying the protection. This is surprising given the number of high profile breaches that have occurred recently. Two recent breaches garnered significant press: Eplison & Sony, and many more have been noted in the press. Epsilon, a marketing firm whose services include permission-based e-mail marketing and database hosting, suffered a massive breach (see here). Epsilon provides marketing services to some of the largest companies in the US. It is estimated that the breach resulted in the loss of only names and email addresses. However, security experts have speculated that this list could increase the responses of phishing emails. Sony’s breach was significantly more complicated and potentially damaging (see... Read more →