Crum & Forster (C&F) announces its new Professional Liability Insurance coverage for Chief Information Security Officers (CISOs). This new solution is designed to protect CISOs from personal liability in an increasingly challenging risk landscape. The policy offers coverage for CISOs who, despite their pivotal role in defending organizations against complex cyber threats, often lack the same protections afforded to other senior executives designated as legal officers of the organization.
With CISO responsibilities and risks continuing to expand amid growing regulatory scrutiny, these professionals face unique exposures, including potential civil and criminal liabilities. Many CISOs, while responsible for securing an organization's systems, technology, and sensitive data, are not legally recognized as corporate officers. This designation gap often results in a lack of coverage under an organization's traditional Directors & Officers (D&O) policy, leaving CISOs at potential risk of personal financial losses arising from defense costs, fines, and judgments.
"CISOs are the front line of defense against cyber threats, yet their role may leave them exposed to personal liabilities—particularly in light of the Securities and Exchange Commission's (SEC) new cyber disclosure rules," said Nick Economidis, Senior Vice President of eRisk at Crum & Forster. "Our CISO Professional Liability Insurance is designed to bridge that gap, providing an essential safety net by offering CISOs the protection they need to perform their jobs with confidence."
Key features of C&F's CISO Professional Liability Insurance policy include:
- Comprehensive professional coverage: Covers consulting services for the organization and subsidiaries, including moonlighting and pro bono work in IT security, without requiring employer consent.
- Zero deductible defense costs: Defense costs are covered without a deductible, ensuring immediate and effective financial protection in case of covered loss.
- Broad claims definition: Coverage includes claims arising from criminal proceedings, such as an arrest or an indictment, providing a robust response to potential personal liabilities.
- Protection amidst new regulatory pressures: As the SEC tightens cyber disclosure regulations, CISOs face increased personal exposure to civil and criminal charges for disclosure violations. C&F's CISO Professional Liability Insurance coverage is tailored to provide defense and indemnity protection for these emerging risks, helping limit personal exposure.
"C&F is committed to supporting CISOs as they navigate their high-stakes role," said Leigh McMullan, SVP, Executive Risk, Crum & Forster. "Our CISO Professional Liability solution underscores C&F's commitment to offering innovative, targeted coverages that meet the evolving needs of cybersecurity professionals."
For more information on C&F's CISO Professional Liability Insurance product, click here.
