Target’s Cyber and D&O Insurance Might Save Them Serious Cash

Generic placeholder image
Carl Niedbala

COO & Co-Founder


We can’t resist talking about this Target Data breach incident.  It has become a major talking point in tech community and the news that keeps surfacing makes for a great little case study.  So in the latest bit of news to surface:

Target does in fact have Cyber and D&O insurance…to the tune of $100M and $65M respectively.  That’s quite a hefty amount of coverage and may come in handy even more than originally expected.  In the time since we last wrote about the incident, the estimated amount of stolen accounts has grown from 40 million  to 70 million accounts!

With D&O and Cyber coverage in place, it seems like whoever spearheaded the insurance purchasing project at Target did it right (unlike Sony, for example).  We’ve already discussed the merits of having cyber coverage in this situation, but the D&O is also useful.  D&O generally protects Directors and Officers for alleged wrongful acts committed while acting as their capacity as a Director or Officer.

One of the biggest reasons for D&O insurance to kick in is for an alleged violation of the Director’s fiduciary duties to the shareholders. One of those is the duty of care, which includes the duty to remain informed about the goings-on of the corporation.  You might argue that it’s the Directors’ duty to remain informed about the any possible security vulnerabilities, and not doing so is a violation of the duty of care.  This claim may be a little farfetched, but not farfetched enough to leave out of a plaintiff’s complaint filing.

The truth is any lawyer worth his salt will throw any reasonable claim on the complaint if it has a remote chance of getting his client more money.  That’s exactly what these insurance policies are designed to protect against: any lawsuits that even remotely hit the mark.

We swear this will be the last post about Target for a long time…partially because it’ll be an eternity until we hear how much Target’s insurers pay out.  Claims adjustments like this can take months, but when the news breaks, it’ll be interesting to see how much Target’s insurance policies eased their pain.  I’m willing to bet it’ll be more than a marginal help…

Worried about your own Cyber or D&O liability? We understand! Feel free to reach out to us any time to alleviate those worries. We’ll teach you everything you need to know and help you find a policy that will protect you when you need it. We can be found at (646)-854-1058 and

[vc_btn title=”GET A QUOTE” style=”outline-custom” outline_custom_color=”#ee2524″ outline_custom_hover_background=”#ee2524″ outline_custom_hover_text=”#ffffff” shape=”square” size=”lg” align=”center” link=”|||”]

Related Articles

June 15 • Directors & OfficersRepresentations and Warranties Insurance

Post-Acquisition Insurance & Tail Policies

Late-stage companies sometimes overlook post-acquisition challenges, but they still pose a problem. Here’s how to navigate these tricky situations.

May 12 • Directors & OfficersGeneral LiabilityRisk Management Tips

Understanding the 5 Steps of a Risk Management Process

Late-stage companies and small businesses need a risk management process — but how do you accomplish this task? Here’s some expert advice on the matter.

key person insurance
April 20 • Directors & OfficersKey Man

Key Person Insurance & CFI for Late-Stage Companies

Late-stage companies have plenty at stake, especially if a critical team member passes away. These policies support momentum after a loss.

April 13 • Directors & Officers

Are SPACs the New IPO for Going Public Fast?

They’re a hot topic on Wall Street — but why are companies forgoing the traditional IPO route and opting for SPACs?

April 10 • Cyber LiabilityRisk Management Tips

Top 5 Social Media Influencer Lawsuits

A social media influencer often reaches millions of people, raising the stakes for the mid-market companies who hire them. Here’s how these risks unfold.

March 23 • Directors & OfficersSpotlight

D&O Insurance Pricing Trends 2021

Amid a game-changing pandemic, D&O insurance pricing trends have shifted. Here’s a look back at 2020 and what to expect from 2021.