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According to a recent Zurich survey, more than 50% of risk managers said that their organizations are now purchasing Cyber Insurance policies. This is a nearly 20% increase since 2011.

Additionally, 53% of respondents from organizations that are not currently purchasing Cyber Liability insurance said that they plan to likely do so in the next 3 years.

Increase in demand is not coming from the entrenched risk managers already aware of the risks, but from board members who are being made aware of cyber risks through prominent news coverage. In just the last two years stories ranging from NSA surveillance, Chinese government hacking, and major corporations like SONY being forced to shut down entire portions of consumer network services for weeks due to hacking, there is a growing and broad awareness of cyber threats.

Also telling was that when asked whether their organization has a cyber threat breach response plan, 20% of Zurich respondents did not even know whether they did or not. When asked if their organization suffered a data breach, which department would be responsible for assuring compliance with applicable state and federal laws governing their response, the majority of respondents said the IT Department was primarily responsible, which is unlikely for many organizations.

Most organizations are now aware of their need to purchase cyber liability insurance coverage, not just risk management professionals. However, when even risk professionals are unsure what their own organization's response strategy is to a cyber liability breach, that means many companies are probably in poor shape. A consultation with a risk management insurance professional should help illuminate whether your organization faces a cyber liability threat, and the first steps to address it.

Topics: compliance, CONTRACTORS, Cyber Liability, ERM, General Counsel, Hacking, insurance, IT, NSA, Sony, SUPPLIERS, Threat, Uncategorized, vendors

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