---
title: "D&O Risks: Not All Data Breaches Fall Under Cyber Policies"
description: "D&O Risks: Not All Data Breaches Fall Under Cyber Policies"
---

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# D&O Risks: Not All Data Breaches Fall Under Cyber Policies

[Mike Smith](https://blog.plrisk.com/author/mike-smith)

 Jul 15, 2015, 1:55:56 PM

[![D&O Risks Not All Data Breaches Fall Under Cyber Policies](https://blog.plrisk.com/hs-fs/hubfs/Imported_Blog_Media/DO-Risks-Not-All-Data-Breaches-Fall-Under-Cyber-Policies-300x200.jpg?width=300&height=200&name=DO-Risks-Not-All-Data-Breaches-Fall-Under-Cyber-Policies-300x200.jpg)](https://blog.plrisk.com/hubfs/Imported_Blog_Media/DO-Risks-Not-All-Data-Breaches-Fall-Under-Cyber-Policies-1.jpg)While data breaches have historically been deemed a cyber-risk liability, more and more chief information officers (CIO) are being prosecuted for damages related to these breaches. Due to the increased threat of liability as a result of cyber-attacks, remind your customers of the [Directors and Officers Insurance Risks](http://www.plrisk.com/products/directors-officers/) involved in your client’s coverage.

The recent lawsuit against CIO of the US Office of Personnel Management Donna Seymour is serving as a platform for transferring liability from cyber insurance to directors and officers insurance. This shift is a result of cyber insurance not covering litigation damages from alleged negligence. Seymour is accused of negligence and privacy violations that resulted in compromising 21.5 million governmental employees and independent contractors last April. This eventually led to a full investigation by Congress which is now causing increased responsibility for Chief Information Officers. These employees can now be held liable for the conception, installation, monitoring, and adaptation of cybersecurity measures, according to Matthew Karlyn, [Foley & Lardner LLP](http://www.foley.com/) partner.

Karlyn also elaborated “We are absolutely going to see more CIOs taking the fall and ultimately being named in lawsuits. As the scope and size of policies and claims increase, personal responsibility is now being called into question and individuals will need to be better educated and receive the full backing of colleagues to implement the necessary initiates to safeguard their data against cyber threats.”

With massive companies such as Target and Adobe suffering immense breaches, the liability burden is becoming blurred as both the company and its directors were held responsible; the litigation and outcome is still ongoing. What’s even more worrisome, these cyber market hacks are still regarded as being in their infancy compared to the potential future scale.

At [PL Risk](http://www.plrisk.com/), we understand the scope of dangers your clients and their businesses face. We strive to offer comprehensive coverage to protect every component of their business with quality and affordable solutions. To learn more about our business insurance offerings, please contact us today at (855) 403-5982.

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