D&O Coverage For Cyber And Privacy Related Exposure

It goes without saying that cybersecurity is a top D&O liability concern for organizations today. According to Willis Towers Watson's 2018 Management Liability (Directors and Officers) U.S. Survey, respondents cited cyber risks as the most concerning D&O risk for 2019. This is not at all surprising given the many recent developments that may impact potential cyber and privacy related liability for directors and officers, some of which include:

• SEC Section 21(a) Report: Last year, in a Section 21(a) report that focused on public companies victimized by cyber-related attacks, the SEC detailed the Enforcement Division's investigations of nine public companies that had lost millions of dollars as victims of cyber fraud. While the SEC did not announce any action against the victims of the cyberattacks, the report made clear the Enforcement Division will continue to scrutinize how public companies create and implement internal controls relating to cybersecurity.