Crum & Forster (C&F) has introduced a new professional liability insurance policy designed specifically for chief information security officers (CISOs), addressing the growing risk of personal liability for these key cybersecurity professionals.
This policy aims to fill coverage gaps that leave CISOs exposed, as they are often excluded from the liability protections offered to senior executives who hold legal officer status within their organizations.
C&F said that this new policy provides comprehensive professional coverage for consulting services rendered to the organization and its subsidiaries, including additional IT security work done on a moonlighting or pro bono basis, without requiring employer consent.
The policy includes zero-deductible defense costs, ensuring immediate financial support for covered losses without out-of-pocket expenses. It also features a broad claims definition that covers claims arising from criminal proceedings, including arrests and indictments, to address the scope of personal liability risks facing CISOs.
The new insurance solution comes as regulatory scrutiny of cybersecurity practices intensifies. Recent changes to the Securities and Exchange Commission’s (SEC) cyber disclosure rules have increased the potential for CISOs to face personal liability for civil and criminal violations, such as disclosure infractions.
C&F said that this new proposition provides tailored protection to help mitigate these emerging risks, offering defense and indemnity coverage to limit personal exposure.
Nick Economidis, senior vice president of eRisk at Crum & Forster, said that CISOs are at the forefront of cyber defense but remain exposed to significant liability risks, especially under the SEC's new requirements.
"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,” Economidis said.
Leigh McMullan, senior vice president of executive risk at Crum & Forster, stated that the new insurance policy reflects C&F’s commitment to addressing the changing needs of cybersecurity.
"Our CISO Professional Liability solution underscores C&F's commitment to offering innovative, targeted coverages that meet the evolving needs of cybersecurity professionals,” McMullan said.
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