In early February, the Senate passed long-awaited mandatory data breach notification laws. Under the proposed laws, if any organisation governed by the Privacy Act determines they have been breached or have lost data will need to report the incident to the Privacy Commissioner. They will also need to notify affected customers as soon as they become aware of a breach.
A failure to notify the Privacy Commissioner could result in a fine of up to $360,000 for individuals and $1.8million for organisations. The legislation considers a serious breach to have occurred when there is unauthorised access to, disclosure or loss of customer information held by an entity, which generates a real risk of serious harm to individuals involved.
The publicity generated by a data breach could incentivise businesses to take further steps to protect their client’s data. Cyber risk is one of the biggest global risks today, and a breach can have serious financial ramifications for your business. Having the right insurance in place can help protect your business from any liability arising out of a cyber-attack or data breach.
If you have any questions about your current coverage or if you’d like to know more about cyber insurance, our internal experts are here to assist you. Submit your question here or call to speak to a qualified broker on 1300 503 503, Monday to Friday, 8.30am-5.00pm.