With the introduction of the EU’s General Data Protection Regulation (GDPR) last month, the pressure on directors’ and officers’ to enhance their cyber security will only increase according to commercial law firm Kennedys.
In a document regarding Directors & Officers (D&O) trends and predictions, the firm cites an increase in the number of reported data protection breaches every year.
The GDPR places accountability obligations on data controllers to demonstrate compliance with those non-compliant facing tougher financial penalties.
Should you fall foul of the new regulation, Kennedys say serious breaches could see fines of €20 million (over £17 Million) or 4% of the company’s worldwide annual turnover (whichever figure is higher).
The responsibility for compliance with the GDPR falls to the company’s director for failing to take reasonable measures to adequately protect data.
Now with such staggering fines, company officials will be working harder to remain vigilant and ensure their cyber security is up to standard.
It is believed that the new regulations will see more class-action lawsuits brought against directors and officers for data breaches and misuse with regards to shareholders or consumer information.
The result of the new ruling is expected to see more claims made on D&O policies for cyber related claims.
If you would like to learn more about GDPR with regards to Directors & Officers Liability Insurance, feel free to give us a call on 01274 515747 or email firstname.lastname@example.org