What to Expect in This Article

What obligations you have as a business owner under GDPR, what scenarios can arise, and how you can protect yourself and your company against the financial consequences. 

The Key Points at a Glance 

Data protection is an indispensable part of doing business for companies and the self-employed alike. Compliance with the General Data Protection Regulation (GDPR) is mandatory for anyone who processes personal data. 

But despite careful measures and precautions, data protection violations can still happen. In such cases, businesses face steep fines that can threaten their very existence. 

To make sure you're protected against the potential financial burden of a GDPR violation, cyber insurance and an add-on module for business legal protection insurance can offer effective safeguards. Add-on modules for existing insurance products can usually be added easily.

Data Protection Rules for Companies and the Self-Employed 

GDPR requires that, under certain conditions, companies may only collect and process personal data with the consent of the data subject.

  • The starting point is a privacy policy that helps protect the privacy of all customers.
  • As a company, you must also take appropriate technical and organizational measures to ensure the security of personal data.
  • If you work with third-party providers who have access to personal data, you must also enter into data protection agreements with them.

There are various additional measures companies and self-employed individuals can take to ensure data protection (and prevent data theft). One important measure, for example, is training employees on how to handle personal data. Human error is often what leads to data breaches.

Since data protection is a complex topic, it can be difficult to keep every aspect in view. It's therefore advisable to get advice from a data protection officer. This way, as a business owner, you can make sure you're meeting all legal requirements and protecting personal data as effectively as possible.

If a data breach occurs, it must be reported to the relevant supervisory authority within 72 hours. Affected individuals must also be informed if the breach is likely to result in a high risk to their rights and freedoms (Art. 34 GDPR).

Risk: Data Theft

Data theft is a real risk for companies and self-employed individuals. A study found that 40% of all companies surveyed had received concrete evidence of cyberattacks and data theft, and one in four companies even reported multiple attacks.

Companies and self-employed individuals are always responsible for the security of their own data. As a business owner, you should be aware of the potential for both first-party and third-party damages:

Case 1 — First-Party Damages: A hacker gains access to your systems — and deletes all business data from the system.

Case 2 — Third-Party Damages: You use your own mobile devices while working on-site for a client. Due to the hacker attack on your system, your client's system also gets infected with the virus. They demand compensation as a result.

Nearly a third of all claims involve data loss and hacking.

If, for example, data is lost in a hacker attack, cyber insurance can protect you against the financial consequences and help ensure your business can continue operating successfully.

When Does Cyber Insurance Apply? 

  • Covers the costs of your own damages from hacker attacks
  • Steps in when third-party claims are brought against you
  • Also applies when intellectual property or personal rights have been violated

Business Legal Protection Insurance 

Just as valuable as cyber insurance is the GDPR add-on module for business legal protection. This legal protection insurance handles the defense against unjustified claims made against your business and is available as an add-on to an existing policy for relatively little money. 

What This Add-On Module Offers 

  • Defense against lawsuits for GDPR violations 
  • Telephone legal advice 
  • Short waiting times 
  • No deductible for smaller legal disputes

More information is available here. 


To find out more, you can also book a meeting with Insurancy right away!