Todd Greeley, head of claims for the Executive and Professional Lines Product at Berkshire Hathaway Specialty Insurance, recently sat down with Insurance Journal to talk about cyber being a new D&O exposure.
Greeley stated that, “every D&O conference you go to, and every D&O blog you might follow, there is almost a daily reference to cyber. Cyber is a potential new D&O exposure. But I don’t think cyber presents something unique in terms of an exposure.” Greeley argues that as long as someone is operating in their role as a director or officer and were to be sued, whether that be for the stock dropping or a regulator saying that you failed to protect company data, they will still be covered under the D&O policy.
Greeley believes that boards should be “proactive in implementing cyber defense measures,” so they will be prepared in case of a breach otherwise they’re “risking a serious problem, and accusations that [they] didn’t meet [their] fiduciary duties.”
