Jason Hart, Managing Director Proactive and Global Security Services CFC.
It’s been three decades since the first chief information security officer (CISO) took their seat at a time when digital risk was a niche concern and cybersecurity barely registered on the boardroom agenda.
Over the years, the role of CISOs has grown into one of the most critical (and unforgiving) jobs in modern business. Today, they’re expected to be the guardians of digital infrastructure, leading efforts to predict, prevent and recover from an escalating wave of cyber threats.
Recent high-profile attacks linked to the Scattered Spider group make it painfully clear just how tough that job really is. And all of this unfolds against a backdrop of tightening regulation, rising costs and vanishing margins for error. One missed alert or one successful breach and the fallout can be both business-critical and career-defining.
So the question isn’t if things might go wrong. It’s what happens when they do.
Liability Risks And The Importance Of Indemnification
The pressure on CISOs today is more than just professional. As cyber attacks become more disruptive and far-reaching—threatening not just operations but the very survival of a business—the spotlight on the CISO burns brighter than ever. Not only are they responsible for safeguarding the business, but when the worst happens, they can be held accountable. That can be regardless of how many warnings they issued or how many stronger controls they pushed for.
In that sense, today’s CISOs are more critical yet also more vulnerable than ever. Over the past few years, we’ve seen high-profile cases of CISOs facing fines, lawsuits and even jail time in the wake of a breach. The role has become as much about managing risk exposure as it is about building out a technical cyber defense.
In this rapidly evolving landscape, CISOs need every possible tool—including cyber insurance—to protect themselves and their organizations. I’ve gone on record before admitting my skepticism. Back in my days as chief technology officer, I believed the only defense against cyber threats was a strong security posture. But that’s just half the story. What I didn’t fully appreciate then is how much personal risk comes with the role of a CISO and the added value of cyber cover.
Personal liability following a cyber incident is very real. For most, it is more than enough to cause sleepless nights. In this way, cyber insurance aims to protect the business as well as the individuals making high-stakes decisions under intense pressure.
If I’d known then what I know now—about how indemnification can shield CISOs from personal legal exposure—I might’ve seen cyber insurance not as a last resort, but as essential support. If a CISO is named personally in legal action following a breach, an effective policy can help ensure they’re not left footing the bill or fighting alone.
Cost Savings And Business Continuity
Of course, cyber insurance doesn’t stop at personal indemnification. Most CISOs I speak to are under relentless pressure to do more with less—shrinking budgets, growing threat surfaces and mounting expectations. In the event of a breach, cyber insurance can act as a business continuity tool, helping to protect balance sheets and maintain cash flow in the face of sudden, unplanned expenses.
Additionally, some policies can connect you with a specialist incident response team, ready to work on your behalf to help contain the breach, minimize downtime and get the business back on its feet. Every hour of disruption counts, and having that level of support can be the difference in preventing a catastrophe.
Finding The Right Cyber Insurance Policy
Of course, not all cyber insurance policies are created equal. That’s the first thing I tell anyone looking to protect their organization against digital threats. It’s easy to assume that any policy will do—but the reality is, unless it’s comprehensive, you could be left exposed when it matters most.
A strong cyber insurance solution should go beyond basic cover. It needs to include broad protection for data breaches, ransomware and business interruption. But just as crucial are the services that come with it: access to a dedicated incident response team, a fast and efficient claims process and proactive cybersecurity support to help prevent attacks before they happen.
That said, cyber insurance is not a replacement for cybersecurity. The two must work hand in hand. Good cyber hygiene, strong internal protocols and resilient defenses are still essential. I always recommend laying out a clear incident response plan—one that outlines exactly what to do depending on the type of breach and, crucially, how to notify your insurer. That early notification can make all the difference, allowing them to step in quickly and help contain the damage.
Adding Cyber Insurance To Your Toolkit
In today’s threat environment, cyber insurance has become a critical tool for CISOs. As businesses grow more reliant on digital infrastructure, their exposure to cyber risk increases in parallel. But while insurance can be a powerful tool for resilience, it’s not a silver bullet. It needs to complement a broader, strategic approach to cyber risk.
Cyber insurance should prompt internal conversations about where your vulnerabilities lie, how prepared your teams are and what steps you’re taking to prevent incidents in the first place. It’s about more than just having a policy. Take the time to understand what that policy covers, how it aligns with your risk profile and how quickly you can activate support when it’s needed.
With that bedrock of understanding, I believe it can be one of the best investments any business—and CISO—can make.
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