Why the GDPR Means You Need More Cyber and D&O Insurance
Last year was a record-breaking year in terms of cyber claims, totalling more claims than the previous four years combined, according to recent industry research. However , researchers predict that cyber claims will rise now more than ever as a result of the General Data Protection Regulation (GDPR). Due to the GDPR’S strict regulaions and hefty non-compliance fines, the consequences your business may face in the event of cyber attacks and data breaches are at an all-time high.
Apart from the need for increased cyber-insurance , researchers also predict that the GDPR will cause a surge in directors and officers (D&O) insurance claims. The GDPR essentially places direct responsibility on directors and officers to priorities cyber -security throughout their organisation. Failing to do so could make them personally liable. To protect your directors and officers, consider adopting the following best practises:
- Approach cyber-security as an organisation-wide risk management issue, not just an IT issue.
- Understand the legal implication of cyber-risks.
- Ensure adequate access to cyber-security expertise and encourage regular discussions on cyber-risk management.
- Set an expectation that management will generate a cyber-risk management framework with proper staffing and budget.
- Discuss cyber-risk in terms of which risks to avoid, which to accept, and which to mitigate or transfer through insurance.
For more information on the need for increased cyber and D&O insurance, contact Daulby Read Insurance Brokers today.