Traditionally, insurance policies like Directors and Officers (D&O) liability insurance didn’t cover the personal liabilities of CISOs. But now, insurers are beginning to offer professional liability policies designed specifically for cybersecurity leaders. This coverage ensures that if a security incident occurs and leads to legal action, the CISO isn’t left exposed to financial ruin.
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Why the shift? As the CISO’s role becomes more pivotal—often tied directly to organizational success and even public perception—companies are starting to recognize that securing these leaders from personal financial risk is just as important as securing the systems they protect.
The CISO’s Challenge: Liability and Insurance
Until recently, most CISOs didn’t worry much about personal insurance coverage. They were covered under their company’s Directors and Officers (D&O) liability policy, or so they thought. But guess what? Times have changed. With the SEC now holding CISOs personally accountable for breaches, that coverage isn’t as straightforward as it once was.
According to the 2023 Global CISO Survey, almost 40% of CISOs aren’t even covered by their organization’s D&O insurance. And over half of CISOs aren’t even covered by severance packages. So, what’s a CISO to do when their job is more high-stakes than ever, but the company’s insurance policy doesn’t back them up?
Why Is This Important?
CISOs are responsible for the security infrastructure that prevents cyber incidents from spiraling out of control. They’re tasked with building resilient systems and responding to threats at the speed of innovation. The reality is, with the increasing complexity of cybersecurity, no plan is foolproof. A high-profile breach or oversight could lead to personal liability, and until recently, many CISOs weren’t adequately covered by traditional insurance policies.
With this new wave of coverage, the risk landscape changes. It’s no longer just about protecting the company’s assets—it’s about providing CISOs with a safety net so they can lead with confidence and continue innovating within their organizations.
Looking Ahead
This is a positive development not just for CISOs, but for organizations as a whole. By supporting their cybersecurity leaders with the right insurance protection, companies can help ensure that CISOs are empowered to take bold steps in securing the future of their businesses. It’s a recognition that the role has matured from being a technical function to one that is intrinsically tied to business leadership.
As this trend catches on, it could become a standard practice—especially as legal and regulatory pressures continue to intensify around cybersecurity. In the long run, the best CISOs will be those who can blend technical expertise with a strategic mindset, and now, they’ll have the security to lead with the backing they deserve.
