Yes, there is insurance coverage for GDPR Fines & Penalties and with potential fines being 4% of previous year’s annual global turnover or $20mm Euros, whichever is GREATER, this is a good thing. Not a day goes by that I don’t get questions from companies of all sizes about GDPR and the implications on their business. Most are concerned about meeting the requirements and subsequently potential fines and penalties that could be levied against them. And shockingly to me, most business leaders think this isn’t something they can insure. They’re wrong!
There are a few things to look at from a coverage standpoint to understand why most people don’t think there is coverage for this. First, this coverage would most likely be found in a cyber liability policy. While more companies than ever are buying cyber liability insurance, there are still those who don’t purchase coverage. If you don’t purchase a cyber liability policy, the chances of coverage for GDPR fines and penalties goes down significantly.
If you do purchase a cyber liability policy, most policies either exclude regulatory fines and penalties or sublimit regulatory fines and penalties. You’ll want to confirm your policy includes coverage for regulatory fines and penalties up to the policy limits.
Lastly, if you’re one of the few who has a cyber policy and that policy does include regulatory fines and penalties coverage, you’re still not in the clear. Many definitions of regulatory fines and penalties may not be broad enough to include GDPR regulation.
If you want coverage for potential exposure to GDPR fines and penalties, it is readily available in the marketplace, you just have to know where to look!
For more information on finding a policy that includes coverage for GDPR and other pitfalls of cyber liability insurance, send us an e-mail request to [email protected] for our whitepaper on the most common misconceptions of cyber liability insurance.