Data Protection Insurance
What Is Data Protection Insurance?
Data Protection Insurance, also known as Cyber Liability Insurance, is designed to protect businesses that hold, process or collect personal data should the data be distorted, stolen or lost. The cause can be accidental or malicious and can involve you own data or third party data. A comprehensive data protection insurance policy can cover a wide range of things including:
· Liabilities & legal costs
· Business interruption expenses
· Forensic costs to identify and restrict the breach
· Costs to notify customers whose data has been lost
· Credit monitoring of customers whose data has been lost
· Public relations and reputation management costs
· Crisis management costs
· Fines and penalties
Why do you need data protection insurance?
Many businesses purchase data protection insurance to cover them should they be penalised for a data protection breach under legislation such as the Data Protection Act or by regulators such as the Financial Services Authority or Payment Card Industry. An increasing number of business see beyond this and understand the vulnerability that modern businesses face through their reliance upon data. The vulnerability can come from external risks such as hackers and viruses or internally from careless or disgruntled employees.
How much does data protection insurance cost?
The cost of data protection cover will vary on your turnover and industry. Your data protection measures will also be a factor. Businesses should have taken technological, physical and cultural steps to limit the chances of a data breach. Accreditation from bodies such as IASME will also help reduce the cost.
Get a data protection insurance quote
If you would like advice on data protection insurance or a quote then please click on our specific cyber liability insurance pages or call us on 01905 21681.