The pitfalls of the digital age.
Today it is almost impossible to avoid electronic communication and online interactions. Most business operations require some form of online presence with virtually all data and personal or corporate information managed and stored electronically.
Whether it be profiles of employees, credit card information, sensitive demographic information about customers, internal information on budgets, customer lists, or personal health information; companies of any size face very real liability issues if this data is stolen, manipulated or were to fall into the wrong hands and enter the public domain.
Many business operators mistakenly believe their Professional Indemnity, Management Liability or Public Liability insurances cover these risks. However these policies fall short of indemnifying the specific risks associated with a data breach or cyber intrusion.
What are the risks? Why is this insurance so important?
– malicious contamination
– denial of access attacks
– theft of an access code to computer system
– destruction/corruption, modification, damage or deletion of data or theft of hardware
– breach of data protection by an outsourced provider where the business operator is legally liable
– defence costs in respect of litigation brought by a data protection authority
– data administrative investigations – costs and expenses for legal advice and representation in connection with a formal investigation by a data protection (or other) authority
– costs, fines and penalties associated with an investigation by the Privacy Commission or associated authority
– fines and penalties imposed by a government authority, data protection or regulatory authority for a breach of data protection laws, privacy laws or regulations
– extortion – extortion loss incurred as a result of a security threat
– costs imposed by a regulatory authority if required disclosure to data subjects is required for notification and monitoring
– loss of income that would have been earned, if not for a security failure or breach
– most studies into personal information breaches have indicated that an affected individual will never do business with a company again if their own personal information is breached.
Can this really happen to my business?
Questions? Let us know!
The information provided here is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Please refer to the Product Disclosure Statement for specific information regarding the insurance cover.