How could GDPR affect your insurance?

From 25th May 2018, your business will need to comply with the new EU General Data Protection Regulations (GDPR).

By now you are probably aware of the practical changes you need to make in advance of the new legislation, but your data processing practices are not the only thing you may have to amend.

Certain aspects of the GDPR might also affect your insurance. Coughlan Commercial Insurance outlines three possible areas of adjustment:



The GDPR makes your business more responsible for handling and processing data. More stringent requirements to report serious breaches, and higher fines for breaking the rules, may place greater responsibility on senior individuals at the top of your company.

As a result, having Directors’ and Officers’ (D&O) cover in place will be more vital than ever. This cover protects decision makers from being held personally liable for cyber-breaches or neglecting cyber compliance. Without it, they could have to defend allegations with their personal finances.



If you already have D&O cover in place, it is a good idea to check that your liability policy does not exclude losses relating to data breaches or cyber issues. Your adviser at Coughlan Commercial Insurance can help look over your current cover and help you to identify any weaknesses in this area.


Silent exposures

“Silent” cyber exposures refer to potential cyber-related losses which are not covered, due to insurance policies that are not specifically designed to cover cyber risks.

For example, imagine an organisation was infected by malware which caused electronically-controlled manufacturing equipment to fail, resulting in injuries to factory-floor employees. If their manufacturing insurance does not specifically include cyber threats, they may not be able to claim on it.

The best way to ensure your business is fully protected from data-related losses is to arrange a dedicated cyber liability policy. These are surprisingly affordable, and becoming a necessity as businesses across all industries handle data.

For an in-depth review of your organisations’ exposure to cyber risks, get in touch with our insurance experts today.