In 2017, a single data breach resulted in sensitive information of almost 50,000 Australians being leaked. This appears to be an ongoing trend and as a result, laws surrounding data breaches are being strengthened with amendments to the Privacy Legislation coming into effect on 22 Feb 2018.
Mandatory Notifiable Data Breach reporting will impact all companies with turnover >$3M as well as those companies (regardless of turnover) in the following areas:
- ALL credit reporting bodies
- ALL health and medical research businesses
- ALL businesses holding Tax File Numbers
Failure to comply with this legalisation could lead to a maximum $360,000 fine for individuals and $1.8mil for organisations.
How Cyber Insurance Can Help protect your Business
A Cyber Insurance policy plays a fundamental role in covering your business for costs incurred when reporting a Notifiable Data Breach. Most insurers, as part of their Cyber policy, offer a 24Hour, 7 days a week, 365-day incident response hotline. Giving you access to specialist vendor panel with local, regional, and global capabilities. Some of the additional benefits that Cyber cover can provide are:
- Incident response and investigation costs
- Crisis communications and reputational mitigation expenses
- Liability arising from failure to maintain confidentiality of data
- Liability arising from unauthorised use of your network.
- Regulatory investigations and or enforcement proceedings expenses and fines/penalties
For more information on the requirements of the Notifiable Data Breaches scheme including how to develop your Data Breach Response plan; visit the Office of the Australian Information Commissioner’s website here.
Speak to an Insurance Advisernet Adviser (click here to find your local adviser) for more information on how a Cyber Insurance Policy may assist you in managing your response to a notifiable data breach.
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.