What is a privacy breach?
A privacy breach involves the loss and unauthorised disclosure of personal information covered by privacy laws, as well as commercially confidential information; including customer or employee details. It is becoming more common as we utilise technology more in our workplaces. Privacy breaches can cause legal issues and massive damage to your reputation.
Real world example
When a retailer emailed a group of customers to promote a special sale they were having, they mistakenly attached a spreadsheet that contained customer names, address and credit card information. They were required to let the affected customers know of the error and offer them credit monitoring services, which cost the company around $50,000. Several of the affected customers began legal proceedings against the retailer which totalled $100,000 to settle.
NZI Cyber Base and Cyber Ultra provides cover for breach of privacy under the privacy insuring clause. It includes cover for legal costs, compensation for third parties and crisis management costs.