cyber and data protection

Cyber Insurance and your D&O Policy

If you’re 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 risk being held accountable if they have failed to take adequate steps to prevent a breach or implement proper cyber-security measures. With this in mind, it’s crucial now more than ever 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 and data protection insurance) 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.

If you need help with your D&O or cyber risks, our team can help. Call us on 01905 21681 or contact us via the website.

Duncan Sutcliffe
Director, Sutcliffe & Co Insurance Brokers - Worcester, Worcestershire