The ABI confirms that `The UK Government estimates 93% of large corporations and 76% of small businesses reported a cyber breach in 2012; and that the cost for a cyber-security breach is £110,000-£250,000 for large businesses and £15,000-£30,000 for smaller ones.`
A recent survey in the UK found that loss of reputation and brand value and cyber crime have leapt up the risk table to second and third place respectively, after business interruption. The risks affect both insurers and businesses alike.
The EU intends to enact a new General Data Protection Regulation conferring upon national regulators the ability to fine organisations up to €100m or 5% of global turnover for data breaches. This increase in potential liability from the regulator is significant.
In the event of a `cyber breach` organisations also face the prospect of claims by third parties, for example for breach of contract, defamation, and data protection issues.
Our team provides comprehensive advice arising from cyber breaches. We advise in relation to regulatory breaches and commercial disputes. In 2013, BTO successfully overturned a £250,000 data protection fine imposed on a Scottish Council, the only successful UK appeal against a fine under the Data Protection Act 1998.
Paul Motion, Partner email@example.com T: 0131 222 2939
Angus Crawford, Partner firstname.lastname@example.org T. 0141 221 8012 (insurance)