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Is There An Insurance Policy For GDPR?

With the GDPR deadline looming, there’s an increased awareness from freelancers of the responsibilities associated with storing and handling client data.

Almost every freelancer handles personal data in some aspect of their job, so curious customers have been asking if their insurance will protect them.

What Is GDPR (General Data Protection Regulation)?

GDPR is a regulation that requires businesses to protect the personal data and privacy of EU citizens. GDPR aims to strengthen data protection legislation and introduce tougher enforcement measures.

Sounds good to me. The regulation is designed so you own your data—not the company.

It does mean changes are in store for freelancers in terms of data protection, and there’s a hefty penalty for breaking the rules.

How Can Insurance Help?

Insurance is a clunky industry. It doesn’t move quickly, so insurers may have to adapt their products once they learn more about GDPR and see how it impacts businesses.

If you’re a With Jack customer, your professional indemnity policy is already designed to help you manage a data breach.

While ICO fines are uninsurable, the policy will cover the cost of a lawyer to defend a regulatory investigation. You can see the policy wording below.

Regulatory Defence and Penalties

We will indemnify You for Claims Expenses and Penalties which You are legally obligated to pay because of any Claim in the form of a Regulatory Proceeding resulting from a violation of a Privacy Law and caused by a Data Breach, Computer Security Failure or Failure to Disclose.

There’s also an add-on for With Jack customers called BBR. It’s designed to minimise investigations by showing the regulator you have a handle of any data breach incident. This add-on aims to respond to the initial investigation within 72 hours, which is a key time stipulation of GDPR. Several of our customers have already added this to their policies. It costs £35.99 per year.

TL;DR

ICO penalties aren’t insurable, but your insurance could help you in the event of an investigation. The insurer will cover the costs of a lawyer to defend a regulatory investigation. With the BBR add-on, it helps minimise the magnitude of an investigation by showing the regulator that you have a handle of any data breach incident.

Further Reading

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Ashley Baxter

Ashley is the woman behind Jack. A photographer, occasional public speaker and tinkerer of code, Ashley's aim is to simplify insurance. And deadlift 100KG.