While it feels like we've been talking about Cyber Liability cover for years now, the fact is, in relative terms it's still new territory for insurers. Appropriate pricing is best determined through solid analysis of a variety of data, and underwriters haven't yet been able to gather enough history on this type of exposure to do an ideal job of quantifying this risk.

However, there's no denying that the threat is quite real. As of this writing, Sony Pictures is the latest high-profile victim of a major cyber breach, one from which some are saying it might never recover. In December, the situation for Sony executives—and stockholders—went from bad to worse each day. The real lesson of the Sony incident is that it could happen to any company that doesn't focus heavily on its cyber security, no matter its size. Which is why it's concerning that A.M. Best reveals in its Fall 2014 Insurance Industry Survey that 53% of insurer respondents said they currently do not purchase Cyber insurance for their own companies.

That's right: More than half of the insurers polled by A.M. Best—the bulk of which were primary carriers, and 68% of which were from the property & casualty industry—admit they do not buy Cyber Liability cover. Some 30% of respondents who said they do purchase this coverage maintain $1 million to $5 million in limits; the rest acquired slightly larger amounts.