Privacy, Data Security, And Your Board: Day Three

In our ongoing conversation about privacy, data security and your board, we turn next to cyber insurance and vendor management. Boards, when executing their duty of care, should keep in mind that while there may be some coverage for data incidents under a company's CGL and D&O policies, there may be significant gaps in coverage as well. Knowing what those gaps are is important. And just as it is important to have a broker with cyber experience, it is also important to seek assistance from cyber counsel during the application process to avoid overstatements or misstatements and to ensure the company is purchasing the appropriate cyber policy based on the company's cyber risk levels. In addition to cyber insurance coverage, another third party issue that often comes up in the privacy and data security space is vendor management. Board oversight of vendor management has become the new normal. What should boards expect? What are practical aspects of effective vendor