Survey reveals rising concern over cyber liability as legislation looms
In a recent client survey into cyber liability by Macbeth Insurance Brokers, almost half of respondents (41%) admitted to concerns over privacy breaches and their potential to negatively impact business reputation.
In the US it is obligatory for companies to notify customers and account holders when a data breach has occurred, and also to pay for any subsequent credit rating monitoring by way of additional reassurance. Falling foul of such legislation can prove expensive as EU-based companies may shortly find out for themselves should similar rules come into force.
Recent high-profile data disasters concerning Sony PlayStation users and Apple customers have only served to confirm business jitters. Not surprisingly, then, cyber liability cover is accounting for an increasing proportion of the policies Macbeth has arranged over the past seven years as more and more businesses become reliant on online storage and sharing of customer data. We especially recommend brand protection and privacy cover as part of this type of package.
With privacy cover, there is protection against the potentially substantial costs of notifying those affected. Just think of the processing, admin and mailing charges involved in writing to tens of thousands of customers, not to mention the labour incurred. Brand protection insurance, on the other hand, will meet the reasonable cost of a PR campaign to counter the impact of any consequent bad publicity and help rebuild the good name of the company or product.
As the EU Justice Commissioner, Viviane Reding, calls for rules to make banks, e-commerce sites and social networks responsible to customers for compromises to their personal information, such cover provides welcome reassurance.
For further information about cyber and privacy insurance contact Tony Gibbs on 0118 9165480