When I was the editor of National Underwriter at thedawn of this decade, the notion of cyber risk was not even on theradar of most board directors and even some company officers. Yetless than seven years later, I can't cite an exposure causing agreater degree of anxiety among those at the top of the corporatepyramid.

Indeed, a sense of dread about how far up the ladder suchliabilities could rise was palpable throughout the Risk andInsurance Management Society's recent annual conference, whereone of the many cyber sessions I attended was ominously entitled:“Protecting your board directors and executives from a cybernightmare.”

D&O coverage scrutiny increasing

Board members and the officers they are entrusted to oversee arebecoming increasingly agitated and inquisitive about cyber riskmanagement efforts at their companies — particularly when it comesto insuring them against derivative lawsuits that could be promptedby a major event. As a result, those charged with buying commercialinsurance, along with their brokers and insurance carriers, shouldexpect intense scrutiny about the adequacy of cyber coverage, sincedata breaches, ransomware attacks, and other technology-relatedexposures may put directors in the crosshairs of plaintiffattorneys.

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