On July 25, 2023, Hunton published a client alert discussing the importance of cyber and directors and officers (“D&O”) liability insurance for companies and their executives to guard against cyber-related exposures. In today’s ever-changing threat landscape, all organizations are at risk of damaging cyber incidents and resulting investigations and lawsuits, underscoring the importance of utilizing all tools in a company’s risk mitigation toolkit, including insurance, to address these exposures.
Since we published the alert, the U.S. Securities and Exchange Commission (“SEC”) has adopted new final rules about cyber risk management and incident disclosure. These rules emphasize that companies have significant exposure from cyber incidents, particularly as regulators are increasing their scrutiny. Cyber and D&O policies can help mitigate these risks, but companies should carefully evaluate their policies to determine what coverages—and gaps in coverage—exist.