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I have business insurance, surely my data's insured?
As ever with insurance the answer is not straightforward. The reality is that the traditional commercial combined policy is still pretty similar in it’s design to those you would have found protecting businesses 50 years ago.
Most commercial insurances focus on protecting the property, profits and liabilities of a business, however they do so in a very traditional manner and as such they don’t apply to the risks faced by businesses of holding data.
With the new General Data Protection Regulations (GDPR) coming into force in May 2018 the business of holding other people’s information is becoming increasingly risky and the consequences of a breach becoming more onerous.
Whilst a robust risk management process around your IT setup and data security is essential, the reality is that no such process can be 100% effective, especially where people are involved.
The good news is that there are specific policies designed to cater for these risks, known as Cyber insurance policies.
Whilst these policies were particularly expensive when they were first introduced, the costs have thankfully reduced significantly in recent years as they become far more commonplace.
The intention of this cover is to provide protection for data held by you, whether that be for your business or whether you are holding third party information. The policies can cover the costs of restoring your data or the costs to your business of an interruption following a hack that brings down your network.
In addition it also covers a number of third party costs, including writing to data subjects following a breach, defending your business from an investigation by the information commissioner and also the costs your data subjects may face following the breach.
The best advice is therefore to consult with your insurance broker to assess your risks and put in place the appropriate protections, including Cyber cover where appropriate.
If you would like to know any more please feel free to get in touch.