Data protection and insurance - Who pays when?

What awaits you in this article

Which obligations you have as an entrepreneur:in by the GDPR, which cases can occur and how you can protect yourself and your company against the financial consequences. 

The most important in a nutshell 

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

However, despite careful measures and precautions, data protection violations can occur. In such cases, there is a threat of severe fines that can threaten the existence of companies. 

To ensure that you are protected against possible financial burdens arising from a breach of the GDPR, cyber insurance and an additional module for company legal protection can already provide effective protection. Additional modules to existing insurance products can usually be easily added.

Data protection regulations for companies and self-employed persons 

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

• The first step is a privacy policy, which helps to 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.
• When you work with third-party vendors who have access to personal information, you must also enter into privacy agreements with them.

There are various additional measures that companies and self-employed persons can take to ensure data protection (and prevent data theft). One important measure, for example, is training employees in the handling of personal data. After all, it is often human error that leads to data breaches.

Since data protection is a complex issue, it can be difficult to keep track of all aspects. It is therefore advisable to seek advice from a data protection officer. In this way, you as an entrepreneur can ensure that you meet all legal requirements and protect personal data in the best possible way.

In the event of a data breach, it must be reported to the competent supervisory authority within 72 hours. Data subjects must also be informed if it is likely that these breaches will result in a high risk to their rights and freedoms (Art. 34 GDPR).

Risk: Data theft

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

Companies and self-employed persons must always take care of the security of all data themselves. As an entrepreneur, you should be aware of both the potential for self-damage and third-party damage:

Case 1 - Own damage: A hacker gains access to your systems - and deletes all operational data from the system.

Case 2 - Third-party damage: The customer is working with his own mobile devices. When the system is hacked, your customer also gets the virus. He demands compensation for this.

Just under one-third of claims involve data loss and hacking.

For instance, if data is lost in a hacker attack, cyber insurance can protect against the financial consequences and ensure the continued successful operation of your business.

When does cyber insurance take effect? 

• covers the costs for your own damages caused by hacker attacks
• steps in when third party claims are made against you
• also covers you if intellectual property and personal rights have been violated

Corporate legal protection insurance 

Just as useful as cyber insurance is the DSGVO supplementary module for company legal protection. The legal protection insurance takes care of the defense against unjustified claims against your company and is already available for little money as an additional module to the existing contract. 

The additional module offers these advantages 

• Defense against lawsuits in the event of violations of the GDPR 
• Legal advice by telephone 
• Short waiting times 
• Waiver of deductible for minor legal disputes

Here is more information. 
Plus, you can book a meeting right now at Insurancy to learn more!