Cyber-exposures to Consider in Your D&O Policy

By mjackson

As a senior-level leader within your organisation, the consequences of a cyber-attack expand even further than that of lost data or resources, and business interruption. Indeed, suffering from a data breach could also place you, as an individual, in a dangerous position regarding directors’ and officers’ (D&O) liability.

In the event of a cyber-incident, senior-level management members like yourself risk being held accountable if you fail to take adequate steps to prevent a breach or implement proper cyber-security measures. With this in mind, it’s crucial now more than over to ensure you have robust D&O cover that takes into consideration the following cyber-exposures:


  • Investigations—Following a data breach, various regulatory investigations could take place to determine if legal action is needed. It’s important to incorporate these investigation costs into your D&O policy.


  • Allocation—If a cyber-attack occurs, you will want to establish a clear boundary between cover for the organisation as a whole (cyber-cover) and cover for yourself (D&O insurance). Be sure to attribute losses and allocate cover appropriately. In addition, ensure any leaders involved in significant cyber-related decisions are properly insured.


  • Reputational damage—As the leader of an organisation that suffered a breach, you could face reputational injury for years to come. Consider including the costs of limiting reputational downfall within your policy.


For more guidance on finding the right D&O policy for your cyber-risks, contact MFL today.