Jeremy King Quoted in Global Data Review on the Cybersecurity Lawsuits Companies May Face Without D&O Insurance Protection

Chair of Olshan’s Insurance Coverage Practice Jeremy King was quoted in a Global Data Review article (subscription required) entitled “Companies May Face Cybersecurity Lawsuits Without D&O Insurance Protection” regarding the SEC’s new cybersecurity rules that require a host of disclosures for publicly traded companies. Included in the disclosures is an annual explanation of the board's oversight of risks a company faces from cyber threats, and the expertise that management teams have assessing these risks. Cyber insurance protections are becoming increasingly difficult and costly for many companies to obtain while many carriers expand exclusions of their policies. Jeremy discusses how some cybersecurity insurance exclusions could become the norm if boards are hit with many cyber-related litigation, investigations or other matters that spur D&O claims. “I expect what we will see is the insurance industry will craft language more closely to analyze the risk from the cyber side and the need to disclose those things,” he said. “Companies should be careful about what their policies say.”