Litigation faced by Target and Home Depot after massive data breaches highlights the cybersecurity concerns that all companies face. Here, attorneys discuss how insurance policies can protect against potential liability and where companies may have trouble getting coverage.
Josh Gold, a shareholder and cyberinsurance recovery attorney, discusses important issues regarding cyber claims and D&O insurance:
"If there is a cyber claim brought against executives, they should definitely have D&O coverage in the current marketplace," Gold said."Any claim against the board of directors or senior management alleging a wrongful act will fall under D&O insurance. I haven't yet seen a cyber exclusion in those policies, nor should there be."
Risk managers should make sure that a company's D&O policies are clean of cyber exclusions, according to Gold.
On applications for D&O insurance, companies should make sure there are no questions about cybersecurity preparedness, but if there are, they should "answer carefully and pull necessary data from other departments like IT," Gold said.