The 25th May 2018 marks the day that the General Data Protection Regulation (GDPR) is being introduced and the rules on data security for businesses are becoming stricter. These new rules and regulations will put additional pressure on directors and officers to ensure that their business is compliant; if not they may face fines of up to €20 million (approx. £18 million).
This also raises the issue that directors and officers carry more liability than ever before, and industry experts are wondering whether they will soon be held personally liable for cyber-breaches.
To prepare the directors and officers in your business for the new responsibilities of the GDPR, consider making the following revisions:
- Ensure your directors and officers liability policy covers data breaches.
- Prioritise cyber security across the business and supply staff with training on best practices.
- Review your processes for collecting clients’ consent, as GDPR rules state it must be an active opt-in. Your records should identify what, when and how individuals have consented to.
As the GDPR is just around the corner, it’s essential that you start to prepare your business as soon as possible. For more information on covering your directors and officers, contact Insync Insurance today for a free liability insurance quote.