With modern businesses becoming more reliant on technology and software, adding cybercrime cover to a business insurance policy is an essential step for many Australian organisations.
In fact, with impending changes to the federal Privacy Act, due to come into effect on March 12, cyber cover is now more important than ever. Understanding these amendments will be critical for businesses that collect and store client information.
To comply with this new legislation, organisations will now be responsible for:
- Ensuring Privacy Notices adequately cover when and how personal information is collected and used.
- Making sure overseas recipients of shared information agree to comply with the Australian Privacy Principals (APPs) or have an adequate privacy regime in place within their own country.
- Implementing processes to address capture of unsolicited personal information, and determining whether to retain, destroy or de-identify it.
- Making sure you have consent before undertaking any direct marketing activity and allowing clear opt-out options.
“While most businesses caught under the Act will already have privacy procedures in place, the changes mean they need to review, update and amend those procedures to align with the new APPs,” Lawyer Mark Radford told Insurance and Risk Professional on February 19.
This new legislation will apply to any Australian business with an annual turnover of more than $3 million and any private health service, regardless of their turnover.
Additionally, the changes will also result in the Privacy Commissioner having more power to enforce compensation payments to anyone who has suffered loss or damage as a result of cyber breach.
To protect themselves from these risks, business owners are encouraged to review their companies’ current privacy procedures to ensure these policies align with the new APPs.
While some management liability and professional indemnity insurance policies contain elements of cyber cover, businesses are urged to consider a more comprehensive cyber insurance plan.
For more information, contact Bruce Insurance. We are a business insurance broker in Perth with over 25 years experience in delivering tailored insurance solutions to Western Australian organisations.