Today, there are many insurance options available for protecting organizations and their top executives against litigation. These include director and officer (D&O) insurance, errors and omissions (E&O) insurance which is sometimes called professional liability or malpractice insurance, and employment practices liability insurance (EPLI). Newer on the scene is cybersecurity insurance. When you add this to the mix, the confusion mounts. With all its complexities and the evolving risk, cyber insurance makes it even harder to understand what is covered and who is protected in the event of a breach.
One thing we do know is that the risk to your company’s directors and officers is very real. If you hold such a position, the threat of cybersecurity has no doubt made your position more vulnerable to personal exposure than ever before. Today, top executives can be held personally liable based on what they did or didn’t do to prevent or respond to the cyberattack, and suits can be filed by employees, shareholders, customers and even third parties.Read More