Cyber primary D&O liability concern: Willis Towers Watson

Cyber ranked as the top directors and officers liability concern for company officials, according to a D&O survey by Willis Towers Watson P.L.C. issued Thursday.

A total of 80% of the 77 risk managers, chief financial officers and chief legal officers from various publicly traded and privately held companies who were surveyed said cyber incidents and claims were a concern. This was followed by employee claims, which was cited 55%, and regulatory and enforcement risk, 48%.

Claims by investors was cited by just 30%, with almost 70% of respondents saying they were either “not concerned” or “slightly concerned” about investors’ claims.

The online survey was conducted from January to April 2018.

“Largely, our results confirmed common expectations,” said the report, which said 91% of public companies purchase D&O insurance as a stand-alone line of insurance coverage.

In contrast, 68% of private or not-for-profit organizations obtain multi-coverage packages that link D&O coverage with employment practices liability, fiduciary liability and/other related coverages, including crime and cyber insurance.

About one-third of private company respondents, though, require that D&O coverage be purchased separately rather than as part of a larger package, according to the report.

While pricing has remained relatively stable over the last year, 24% of respondents reported an increase, with 10% seeing increases of 5% or more.  A total of 39% attributed premium results to their company’s financial performance and outlook.

A total of 77% said they see entity investment coverage as moderate to very important.