GDPR: How cyber liability insurance can protect your business

Whatever your business, it’s unlikely that the General Data Protection Regulation (GDPR) has passed you by. Launching on 25th May 2018, GDPR aims to give individuals more power over their data and how it’s processed. As a result, GDPR will affect any business that handles personal data.

The ramifications for businesses whose practices do not meet the requirements of the regulation could be severe. If a business is perceived as having failed to comply with GDPR, it could be presented with a fine for up to €20m or 4% of its turnover, whichever is greater.

Data breach, whereby the personal data held by a business falls into the wrong hands, is a particular concern primarily because the routes by which this could happen are multitudinous. Alongside personal error, whereby information is accidentally sent out of the business, there is also the ever-evolving risk of cyber-crime. From phishing emails, to imitation and ransom, there are many risks to be aware of.

But it’s not just the financial hit you need to be aware of. You’re also likely to suffer reputational damage as a result. A business will be judged on how it manages such a crisis and affect how successful it is at retaining clients.

As S-Tech Director Phil Thorpe explains: “No matter the data management practices and procedures being introduced by a business, it’s likely that it will fall victim to a hack or simple human error at some time.”

Most companies will not know what to do when faced with system degradation and extortion demands

It is at this point that you will appreciate the value of an insurance partnership that captures and manages the situation on your behalf, and from the outset. Quite simply, most companies will not know what to do when faced with system degradation and extortion demands.

Swift response to a data breach

Capturing and effectively managing the initial incident is key to how a business emerges from a data breach problem. A cyber liability policy can play a vital role in this instance.

Phil recommends looking for the following pointers when choosing a cyber liability insurance policy:

• First response service
• Cover for your own repair costs
• Cover for your loss of income
• Cover for claims from affected parties, such as individuals, employees and other businesses, for damages and costs
• Regulatory costs and fines

“The insurance cover provided by a cyber policy is important, of course,” Phil continues. “But of equal, if not greater, importance is how an insurer deals with the problem from the outset. “

“As a result, the choice of insurer and the effectiveness of their first response services is a vital consideration in the insurance-buying process. In this regard, not all insurance companies are equal!”

The effectiveness of their first response services is a vital consideration in the insurance-buying process

“You should look for a company with a first response team that will supply you with appropriate IT network, legal and forensic support. They will also manage the notification to the Information Commissioner’s Office (ICO) and provide necessary credit/identity monitoring services. This will be accompanied by call centre support and public relations management. They should also manage communications with the people who may be affected by the breach, as well as any extortion/ransom demands.”

“Choosing the right insurer is not easy,” Phil concludes. “There are significant differences between them in respect of both cover and restrictions. As such, you may need to speak to an independent insurance adviser who can walk you through the options. At S-Tech we have a wealth of experience in this field and can find the right solution for your business.”

To discuss your cyber risks with Phil, call S-Tech on 012223 324233 or visit www.s-tech.co.uk