This article also appeared in Advisen (December 25, 2014).

As many directors and officers (D&O) insurance policyholders know, the costs of conducting and responding to an investigation are substantial—and that is definitely now true in the cyberbreach context. If there is a serious breach, the odds are overwhelming that the victim will incur enormous costs for the investigation process. Accordingly, insurance is often pivotal in addressing the impact to a policyholder for such expenses.