As cybersecurity incidents and data breaches become increasingly common, D&O insurers need to be aware of the recent trend of securities and shareholder derivative lawsuits brought against public companies and their directors and officers for failing to implement adequate protections against cyber-related risks, and/or to engage in a sufficient oversight of such protections. While some exclusions may limit exposure to these claims, D&O insurers who wish to exclude coverage for such claims fully should consider including cyber-specific exclusions in their policies.
via D&O coverage issues arising from increased cyberattacks, shareholder lawsuits | PropertyCasualty360.
