When All Else Fails— Why Cyber Liability Insurance Matters
In today’s world, cyber threats are on everyone’s minds. That’s because it’s slowly becoming the number one business risk for organizations of all sizes. From system hacks and DDoS attacks to the increased prevalence of ransomwares, news of cyberattacks seems constant. While there have fewer reports of major attacks comparable to the Yahoo breach of 2017, where the personal information of 3 billion users was exposed, that’s no reason to be complacent. Governments are stepping in to update policies and standards, which hold more organizations accountable.
For instance, the new European Union’s General Data Protection Regulation (GDPR) went into effect on May 25, 2018. The GDPR mandates that businesses adhere to specific governance and accountability standards in the processing and protection of data concerning EU citizens. This new legislation also stipulates that should a breach occur, companies must report it to the supervisory authority within 72 hours. Failure to comply with these new regulations could result in up to $20 million euros in penalties or 4 percent of the company’s global annual turnover.