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Data protection specialists at law firm Denton Wilde Sapte issued the warning amid growing incidents of data security breaches, including virus infiltration and hacker attacks.
"In response to these uncertainties a cyber-crime insurance market has developed, offering specific coverage against data and IT risks," observed the company's Martin Fanning.
He continued: "As with all insurance it will be necessary for the organisation to undertake an impact assessment to understand the magnitude of its data risks and to assess whether specific insurance is necessary.
"In addition it is important to note that insurance is simply an ex-post compensatory mechanism," he concluded, observing that certain types of loss may be excluded or incapable of insurance.
Business advisers have previously reminded managers that although insurance is an important risk management tool, it is not a substitute for effective day-to-day data management.
The issue has received recent prominence as a consequence of HM Revenue and Customs' loss of computer disks containing the confidential details of 25 million child benefit recipients.
Quantum Risk Management is a leading Health and Safety Consultancy
'Cyber-crime insurance' needed to protect data
Company bosses have been warned to read the small print of general risks and business interruption policies to insure against data protection problems.Data protection specialists at law firm Denton Wilde Sapte issued the warning amid growing incidents of data security breaches, including virus infiltration and hacker attacks.
"In response to these uncertainties a cyber-crime insurance market has developed, offering specific coverage against data and IT risks," observed the company's Martin Fanning.
He continued: "As with all insurance it will be necessary for the organisation to undertake an impact assessment to understand the magnitude of its data risks and to assess whether specific insurance is necessary.
"In addition it is important to note that insurance is simply an ex-post compensatory mechanism," he concluded, observing that certain types of loss may be excluded or incapable of insurance.
Business advisers have previously reminded managers that although insurance is an important risk management tool, it is not a substitute for effective day-to-day data management.
The issue has received recent prominence as a consequence of HM Revenue and Customs' loss of computer disks containing the confidential details of 25 million child benefit recipients.
Quantum Risk Management is a leading Health and Safety Consultancy
Posted on 17/12/2007
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0845 6780076
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