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The D&O Insurance Conundrum for CISOs
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One of the hot topics of discussion at our 17th Annual New York CIO Summit of America is how a growing number of CISOs are applying for personal liability insurance beyond D&O or Directors & Officers insurance coverage. New regulations from the Securities and Exchange Commission (SEC) now place personal responsibility for data breaches on CISOs, according to a recent Dark Reading article.
One of the issues raised by CISOs and cyber leaders who attended the summit is that many CISOs are not covered by corporate D&O insurance even though they are now in the crosshairs of the SEC.
According to the 2023 Global Chief Information Security (CISO) Survey from Heidrick & Struggles, 38% of CISOs are not covered by their organization’s D&O insurance. Meanwhile, 36% report to the CIO (down from 38% in 2022) while 7% report to a Chief Risk Officer or a regulatory executive, 6% report to the CFO and just 5% report to the CEO.
Several CISOs and cyber leaders shared their need to take steps to protect themselves – even if this means obtaining outside counsel to represent their interests. It’s become a growing concern since the SEC filed its first-ever lawsuit against a public-company CISO at SolarWinds regarding a breach incurred in 2020 which is believed to have been accessed by attackers in September 2019.
According to the SEC, SolarWinds’ public statements about its cybersecurity practices and risks did not mesh with internal assessments shared with the CISO, as well as the CISO’s own presentations about the company’s cyber vulnerabilities.
At HMG Strategy, we cover what matters most to CIOs, CISOs and business tech leaders in a trusted environment where executives can speak candidly. We will continue to monitor the D&O insurance issue for CISOs as well as cybersecurity issues that are top-of-mind for them.
To learn more about HMG’s upcoming C-Level Technology Leadership Summits in your region and to register for an upcoming event, click here.
To learn more about our 8th Annual New York CISO & Technology Leadership Summit taking place on June 11 at the Harvard Club of New York, including the speakers and topics to be addressed and to register for the event, click here.
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