As global cyber threats intensify, directors and officers (D&Os) face increased regulatory scrutiny, surging litigation and ballooning insurance premiums, according to the latest Allianz Commercial D&O Insurance Insights 2026 report. D&O insurance for cybersecurity is a hot issue in the industry and at many companies.
The Risks – D&O Insurance for Cybersecurity
The Allianz report lists hacking threats, laws, and regulations raising risks for directors and officers, all creating interest in D&O insurance for cybersecurity. They include: the EU’s General Data Protection Regulation (GDPR); California’s Privacy Rights Act; the Digital Operational Resilience Act (DORA), and Europe’s Network and Information Security directive (NIS2), which establishes cybersecurity standards for critical sectors in the EU. “NIS2 in particular raises the stakes for cybersecurity. The directive extends robust cyber security and reporting standards to more companies and their supply chains – failure to comply can result in fines of up to €10mn (note: app. $11.65 million) or 2% of global turnover. The directive also increases the personal accountability for D&Os, who will be directly responsible for overseeing cyber security, risk management, and incident response preparedness,” according to the report.
“More and more we see companies and their investors holding board members responsible for cyber incidents,” warns Alfred Mora, Chief Underwriter for Financial Lines at Allianz Commercial Germany and Switzerland. This surge stems from D&Os’ fiduciary duty to oversee cybersecurity postures—failures here can trigger shareholder class actions, derivative suits or even internal recourse if boards skimp on risk controls or business continuity plans (and don’t forget about the challenges posed by AI.)
Directors and officers also need to worry about being sued for not having enough cyber insurance, the report warns. And if you think leaders of large companies are too smart to forego adequate cyber insurance, check out our coverage of a global brand that apparently had no cyber insurance when a hack shut it down, disrupted an entire industry and likely cost billions or dollars.
Litigation Risk for Directors & Officers
“This is a real threat for directors,” says David De Greef, Head of Financial Lines and Cyber, Benelux, Allianz Commercial, adding: “With ongoing cyber-attacks and increasing regulation it will be easier to go after them.” So is innocence a defense in cyber insurance-related lawsuits? Maybe, but in one regard it doesn’t matter: “(W)hile they might not be at fault, they can still face significant defense and investigation costs,” he concludes.
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Risks Extend Far Beyond D&O Insurance for Cybersecurity
For directors and officers unworried about cyber threats, there are plenty of other risks for corporate leaders. Along with issues such as tariffs, multinational boards need to worry about the growing number of armed conflicts across the world — the most military “state conflicts” in seven decades, according to the report. “Ongoing geopolitical instabilities expose companies and their management to an array of complicated operational and financial challenges, which can have enormous potential to result in corporate and securities litigation,” concludes the report.
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