What is cyber coverage?
Cyber coverage is a type of insurance that provides protection from losses related to a cyber incident, such as a data breach or ransomware attack.
Cyber incidents can have a far-reaching impact and take a long time to resolve. They can also result in significant financial losses and reputational damage, which is why it’s essential to have the right insurance coverage in place.
What is D&O insurance?
Directors & Officers insurance, commonly referred to as D&O insurance, provides a company’s executive leadership with protection from personal financial loss if they are named as defendants in a litigation due to actions taken or decisions made while leading and/or managing the business.
D&O insurance typically covers legal fees, investigation costs, and settlements or judgments, depending on the specific policy language.
Understanding the differences: D&O insurance versus cyber insurance
Cyber and D&O insurance are distinct types of coverage. While cyber insurance protects a business in the event of a cyber incident, D&O insurance protects individual executives and their personal assets if sued for mismanagement, breach of duty or other related acts.
Cyber insurance does not protect an executive’s personal assets, and D&O insurance does not protect a business from losses resulting from a cyber attack. Combining these coverages can ensure companies and their leaders have more complete protection from risk.
Understanding the differences: D&O insurance versus cyber insurance
Combining cyber insurance with D&O coverage provides more comprehensive protection from multiple risks that often overlap. The benefits of this layered coverage may include:
- Customized, flexible protection for unique insurance needs
- Cost-effectiveness
- Fewer coverage gaps
- More efficient claims handling
- Expertise of an insurance professional to help reduce exposure
Speak to your agent about D&O and cyber insurance coverage options
Today, cyber risks and executive management decisions are often intertwined. By securing both cyber insurance and D&O coverage, your company and its executives can benefit from comprehensive business protections and risk management strategies.
