Chief Information Security Officers face increasing legal and financial risks as their roles grow in prominence within organizations. Traditionally excluded from professional liability policies that protect other executives like CEOs and CFOs, CISOs have often shouldered significant personal exposure during lawsuits arising from alleged negligence or inadequate work.
In response to this gap, insurance provider Crum & Forster has introduced a specialized professional liability policy for CISOs.
This new offering aims to safeguard cybersecurity executives from personal losses, whether the risk stems from corporate oversight, regulatory compliance failures, or external consulting work.
Why It Matters: As cybersecurity incidents rise in frequency and severity, CISOs increasingly face legal and financial scrutiny for their roles in safeguarding corporate data. Ensuring CISOs are adequately protected not only supports their confidence in performing high-stakes work but also helps organizations attract and retain top talent in this critical area.
- Specialized Coverage for CISOs: Unlike traditional directors and officers (D&O) liability insurance, Crum & Forster’s policy specifically addresses the unique liabilities CISOs face, including moonlighting, pro bono IT work, and consulting.
- Broad Protection Scope: The insurance covers zero-deductible defense costs, criminal proceedings, and regulatory compliance, aligning with SEC cyber disclosure rules to mitigate risks of both civil and criminal penalties.
- Market Pricing and Flexibility: Policy costs range from $3,000 to $5,000 per individual, with pricing influenced by factors like coverage limits, deductibles, and whether the insured entity is public or private.
- Growing Legal Challenges for CISOs: High-profile cases, such as the SEC’s lawsuit against SolarWinds’ CISO, highlight the increasing legal pressures on cybersecurity executives and the need for targeted protections.
Go Deeper -> CISOs can now obtain professional liability insurance – CyberScoop
