Cyber Insurance in the Time of Data Privacy Protection Just over a year ago, the European Union enacted the General Data Protection Regulation (GDPR) , a comprehensive data protection law. The GDPR applies to all data directly or indirectly related to an identifiable person in the EU that is processed by an individual, company or organization. This means that any company using the data of EU subjects, even if this company is stationed outside the EU, will need to comply with new ways of protecting data related to identifying information, IP address, cookies, health, genetic or biometric data, racial or ethnic data and sexual orientation. Growth of Data Privacy Laws The GDPR is viewed as a model for updating privacy laws around the world. In fact, California has passed a wide-reaching privacy law, The California Consumer Privacy Act (CCPA) that will go into effect on January 1, 2020. The CCPA gives Californians an assortment of new privacy rights, starting with the right to be informed about what kinds of personal data companies have collected and why it is being used. The law technically is relevant only to California residents; however, businesses that are impacted by the law do not need to have a physical presence in California.
Cyber Liability Insurance and Privacy Legislation The GDPR regulations spotlight the importance of data privacy. This privacy extends to the systems that collect, store, process and transmit data. Cyber privacy can include both personally identifying information (PII) or non-identifying information which when aggregated can be used to identify – like a user’s behavior on a website and cookie information. The GDPR requires that an organization notify data protection regulators and affected individuals about any data breach which is likely to result in a privacy risk to those affected. Notification significantly increases the costs of responding to a data breach, as well as the chances that affected individuals will make claims against the controller. Cyber liability insurance augments and supports the business’s efforts to recover in the event of a cyber-attack. It will provide access to expert resources and financial support through investigation, notification, recovery and post-recovery activities related to a data breach event. In a recent article in Insurance Business Magazine America, Ian Thornton Trump, head of Cyber Security at AmTrust International explained, “We need to be very clear about what cyber liability insurance can cover, what it can’t cover, and how it works in conjunction with other security controls and regulatory frameworks.”
Learn more from Ian Thornton Trump about the importance of cyber liability insurance in the time of data privacy legislation by reading the full article. Article Source:https://amtrustfinancial.com/blog/small-business/cyber-insurance-in-the-time-of-data -privacy