Over half of respondents conveyedgetting better language as a "most important" priority for thisyear. (Photo: Shutterstock)

Directors and officers (D&O) are most concerned about cyberrisks and employee-related risk, according to the 2018 Willis Towers Watson Management Liability(Directors and Officers) U.S. Survey.

When looking at perspectives from specific respondent roles(risk managers, CFOs, CLOs), cyber ranked as a top concern for all, whileCFOs and legal compliance respondents largely had moderate to greatconcern over employee claims. Regulatory and enforcement risks alsoweighed on the minds of nearly half of the respondents, andmultinational/cross-border risks resonated with most CFOs in thissurvey.

Related: Who's on board when it comes to cyberresilience?

Insuring D&O concerns

Public companies overwhelmingly (91%) purchase D&O insurance as a stand-aloneline of insurance coverage.

Eighty-three percent of public respondents' D&O programstypically contain both traditional "A-B-C D&O" insurance(protects the insured persons and the organization) and excess"Side-A only" above the A-B-C coverage.

Private or not-for-profit organizations tend to purchase D&Oinsurance as part of a multi-coverage package, linking D&Ocoverage with employment practices liability, fiduciary liabilityand/or other related coverages like crime or cyberinsurance. About one-third of private company respondents,however, require that D&O coverage be purchased separately,meaning not as part of a larger package.

Related: D&O issues with blockchain, cryptocurrencies& ICOs

What's covered?

Over half of respondents conveyed getting better language as a"most important" priority for this year. Seemingly in contrast toWillis Towers Watson's "risk perceptions" results, 72% ofrespondents do consider insurance for shareholders/investors claimsto be "moderately to very important."

This year's survey reflects that D&O risk stakeholders careabout much more than just their insurance program's price. Whileinsurance program costs do matter, carrier selection,relationships, breadth, clarity of coverage and claim-handlingproficiency are all important priorities.

The Willis Towers Watson 2018 Management Liability (Directorsand Officers) U.S. survey includes responses from 77 executivesfrom various companies, representing a wide range of industries andgeographic regions.

Related: Increasing underwriting challenges in D&Oinsurance