All companies that handle business or personal data are liable for IT security risks, as information flow, data handling and the daily course of business are all based on hardware-, software- and cloud systems. Even the most protected systems face continuous danger. However, companies have to consider not only the damages arising from these, but also data protection liability.
Data protection liability covers data loss and breach of business and personal data, where either a mistake of a co-worker or outer hacking can be the reason of the damage. A proper Cyber Risk Insurance can manage all these issues.
What is a Cyber Risk Insurance?
Cyber risk insurance (or cyber insurance) includes refunding financial losses: penalty imposed by the Data Protection Authority (NAIH), the costs of IT security experts and charges of legal defense. These latter are reimbursed even when only the suspicion of data leakage emerges, because more serious claims for damages can be prevented with proactive expert provisions. Other, more serious financial covers emerging at the insured company are: data leakage, restoring reputation lost due to data loss (PR cost), expenses of informing the clients, or: loss of profit arising at the firm due to business interruption.
Other options include responsibility in connection with the Internet (unpermitted data content on websites), forwarding viruses (by accident) and if the main profile of the company is data handling (e.g. an archiving or telemarketing firm), then the cost of recovering data lost due to their fault (to be paid to their clients).
You can find more information about cyber risks and insurances related to these risks in our blog.
GDPR data protection liability (Privacy)
The insurance regarding the data processing responsability is a minor coverage designed for data breach.
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We are acting as insurance brokers on behalf of our customers, not only during the preparation of the insurance contracts, but also during the claim settlement. Our mission is to optimalize the insurance premiums and conditions, to dedicate our skills to our customer’s best interests. Our insurance intermediation is free for our clients, we get our renumeration from the insurer where we have placed the risk. This product costs the same as if bought directly from the insurer.