Data protection and associated risks – part 2Reading Time: 4 minutes
You don’t have to be a giant corporation, like Sony attacked by North Korean government hackers, to understand: in the world of information data protection, and associated risks are part of every day’s life. All companies must face these risks associated with electronic data stored on computer, server or internet.
Data protection risk comes with all kind of data handling – beginning with the paper-based files, through information stored on any laptop and ending with dangers of cloud-based systems. Companies using internet can face denial of service attacks against their servers or web attacks defacing and disrupting their web page.
Data protection and liability insurance packages have been developed by numerous insurance companies to handle risks associated with data protection. Virtual Call Center’s insurance partner is AIG. The CyberEdge insurance is a protection package against unforeseen consequences of data leaks and data privacy events.
Let’s deal with data protection risks
In the case of data leaks private data or confidential business information leaks from the company’s system because of a cyber attack or data mishandling. The IT team is deeply concerned by this issue while business continuity must be served, as usual. The team has to investigate, what caused the data leaks: human error or attack? The team has to decide: has the IT team enough knowledge to handle the situation, is there a need for extra servers, or the running server needs to be stopped? And if there is an action plan for IT emergency situations, how can it be implemented?
News of data leaks travels fast in the world of social media. Company trust can be crushed in a matter of hours. In PR crisis media, customers and co-workers must be handled carefully and cautiously. Quick action and adequately controlled PR action is needed to regain trust and to protect the company’s reputation.
The event also can have significant financial consequences. Regulatory actions, fines can arise. People affected by data mismanagement can file lawsuits. Claims can come from companies who had to pay compensations to their customers. Investigating the causes of data leaks, reconfiguring networks, protection, restoring data and system is also costly. The company may be forced to shut down all operations – this causing significant income loss. Stock market and stock prices are also quickly affected by the event. Reputation loss can affect the company, and it’s leaders as well.
CyberEdge counters some of the potentially far-reaching consequences of data leaks and breaches. The insurance covers possible financial consequences of data protection events, data leaks or mishandling data. The insurance helps counter negative reputational effects by combining insurance protection with access to independent experts.
Crisis management mitigates reputational damage and rebuilds trust. In order to safeguard the company’s reputation, independent experts are hired and paid by the insurance company. PR services can be used to contain reputational damage. Insurance covers costs of notifying data subjects who may be affected by the event.
CyberEdge covers defence cost and damages associated with any breach of personal or corporate data, regardless that the insured or its contractual partners caused the damage.
Related to network security events defence cost and damages associated with the followings are covered:
- if a virus infected third person’s data stored on the company’s system
- if unauthorised access was detected to third person’s data due to mistake or negligence of the insured
- if access code to the network was stolen from the company
- if hardware containing personal data is stolen
- if unauthorised publication of third party data by an employee happens
In the case of fines and investigations, the insurance covers the potentially significant costs and expenses of data protection, regulator investigations and legally insurable fines following data security breaches.
Optional multimedia liability insurance is also available, this covers the damages and defence costs incurred in connection with a breach of third party intellectual property or negligence in connection with electronic content. Privacy extortion liability insurance is also optional, this covers ransom payments (extortion loss) to third parties incurred in terminating a security threat. Network interruption is also optional and covers the loss of net profit as a result of a material interruption to the insured’s network, after a network security breach.
Safely with us
There is a slim chance to meet the risk detailed above at Virtual Call Center, but to provide full protection to it’s partners, AIG is data protection and liability insurer of Virtual Call Center. With this insurance, the company provides an extra guarantee for the continuous and hassle free operation of its partner.