Why the GDPR Means You Need More Cyber and Directors’ and Officers’ 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 regulations 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 prioritise 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 practices:
- Approach cyber-security as an organisation-wide risk management issue, not just an IT issue.
- Understand the legal implications 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.