--- title: GDPR Regulations and Cyber Liability description: GDPR Regulations and Cyber Liability --- [![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/logo.png)](https://www.axisins.com/) Connect with us Call us Today [(201) 847-9175](tel:2018479175) [(877) 787-5258](tel:8777875258) - - About Axis - [Our Approach](https://www.axisins.com/about-us/) - [Our Team](https://www.axisins.com/our-team/) - [Testimonials](https://www.axisins.com/testimonials/) - [Case Studies](https://www.axisins.com/case-studies/) - [News & Events](https://blog.axisins.com/tag/news-and-events) - [Careers](https://www.axisins.com/job-opportunities/) - Product Lines - [Overview](https://www.axisins.com/products/) - [On-line Quoting](https://www.axisins.com/products/on-line-quoting/) - [Surety Bonds](https://www.axisins.com/products/surety-bonds/) - [Cyber Liability/Privacy & Network Security](https://www.axisins.com/products/cyber-liability-privacy-network-security/) - [Overview](https://www.axisins.com/products/cyber-liability-privacy-network-security/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Why Cyber Liability](https://www.axisins.com/products/cyber-liability-privacy-network-security/why-cyber-liability/) - [Cyber Hotline/Resources](https://www.axisins.com/products/cyber-liability-privacy-network-security/cyber-hotline-resources/) - [Claims Scenarios](https://www.axisins.com/products/cyber-liability-privacy-network-security/claims-scenarios/) - [Professional Liability Insurance (E&O)](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/) - [Overview](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Professions](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/professions/) - [Insurance](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/insurance-agents-brokers/) - [Legal](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/legal/) - [Real Estate](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/real-estate-agents-brokers/) - [Technology](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/technology/) - [Healthcare/Medical](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/healthcare-medical-practice/) - [Architects & Engineers](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/architects-engineers/) - [Financial Institutions](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/financial-institutions/) - [Construction](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/construction/) - [Consulting](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/consulting/) - [Media](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/media/) - [Mortgage Bankers & Brokers](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/mortgage-bankers-brokers/) - [Miscellaneous Services](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/miscellaneous-services/) - [Resources](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/resources/) - [Claims Scenarios](https://www.axisins.com/products/errors-omissions-professional-liability-insurance/claims-scenarios/) - [Management Liability Insurance (D&O)](https://www.axisins.com/products/management-liability-insurance-do/) - [Overview](https://www.axisins.com/products/management-liability-insurance-do/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Claims Scenarios](https://www.axisins.com/products/management-liability-insurance-do/claims-scenarios/) - [Resources](https://www.axisins.com/products/management-liability-insurance-do/resources/) - [Employment Practices Liability Insurance](https://www.axisins.com/products/employment-practices-liability-insurance/) - [Overview](https://www.axisins.com/products/employment-practices-liability-insurance/) - [Tail Coverage Insurance](https://www.axisins.com/products/tail-coverage-insurance/) - [Claims Scenarios](https://www.axisins.com/products/employment-practices-liability-insurance/claims-scenarios/) - [Resources](https://www.axisins.com/products/employment-practices-liability-insurance/resources/) - [Crime Insurance](https://www.axisins.com/products/crime-insurance/) - [Overview](https://www.axisins.com/products/crime-insurance/) - [Claims Scenarios](https://www.axisins.com/products/crime-insurance/claims-scenarios/) - [Resources](https://www.axisins.com/products/crime-insurance/resources/) - [Fiduciary Liability](https://www.axisins.com/products/fiduciary-liability/) - [Overview](https://www.axisins.com/products/fiduciary-liability/) - [Claims Scenarios](https://www.axisins.com/products/fiduciary-liability/claims-scenarios/) - [Resources](https://www.axisins.com/products/fiduciary-liability/resources/) - [FAQs](https://www.axisins.com/faqs/) - Client Resources - [Make a Payment](https://axisins.epaypolicy.com/) - [Apps & Forms](https://www.axisins.com/client-resources/apps-forms/) - [Report A Claim](https://www.axisins.com/client-resources/report-a-claim/) - [Request A Certificate of Insurance](https://www.axisins.com/client-resources/request-a-certificate-of-insurance/) - [Blog](https://blog.axisins.com/) - [Contact Us](https://www.axisins.com/contact-us/) -   CALL US TODAY [(877) 787-5258](tel:8777875258) ## Keeping you up to date on trends, emerging exposures and other critical issues. [Subscribe To Our Blog](https://share.hsforms.com/18qZLml0MTSqtYWBFqQFAGA35dv4?__hstc=172306556.605fbd816f522e1de3e9428cb969d5b4.1580877711545.1580973215492.1580978435349.10&__hssc=172306556.3.1580978435349&__hsfp=1035641285) # GDPR Regulations and Cyber Liability May 18, 2018 Chris Davis By: Drew M. Smith ![](https://blog.axisins.com/hs-fs/hubfs/Imported_Blog_Media/AdobeStock_184714798-Converted-300x205.png?width=300&height=205&name=AdobeStock_184714798-Converted-300x205.png)On May 25th, after a two-year transitional period, the European Union will enforce the General Data Protection Regulation **(GDPR)** on all its member states. Its fundamental core is to bring data protection into the digital age and protect consumers in the EU from being monitored. This piece of legislation came about as fear of data loss increases across Europe. This legislation, passed in 2016, updated their privacy laws. Corporations now must meet a certain standard in protecting consumer privacy and protection. However, that standard is much higher than most companies expected and it is also much higher than in the U.S. This has led many companies to scramble to put together a plan to protect this information. The infrastructure, the personnel required and the training will cost companies hundreds of millions of dollars to meet this.1 GDPR is an evolution of a previous data law that was passed over 20 years ago. In the wake of multiple breaches across the continent, many people were concerned about the loss of their personal data. This new regulation only covers their personal data, or what the U.S. calls Personal Identifiable Information (PII). It also requires the following: - **Privacy By Design:** The regulation formalizes the right for a person to withhold their PII, requiring consent before its used or obtained. - **Data Protection Impact Assessments:** When certain data is processed, companies must assess privacy risk. - **Right to Erasure and To Be Forgotten:** There’s been a long-standing requirement in the DPD allowing consumers to request that their data be deleted. The GDPR extends this right to include data published on the web. This is the still controversial right to stay out of the public view and “be forgotten.” - **Extraterritorially:** The new principle of extraterritoriality in the GDPR says that even if a company doesn’t have a physical presence in the EU but collects data about EU data subjects — for example, through a web site—then all the requirements of GDPR are in effect. In other words, the new law will extend outside the EU. This will especially affect e-commerce companies and other cloud businesses. - **Breach Notification:** Any breaches must be reported to a consumer within 72 hours. - **Fines:** The GDPR has a tiered penalty structure that will take a large bite out of offender’s funds. More serious infringements can merit a fine of up to 4% of a company’s global revenue. This can include violations of basic principles related to data security — especially PBD principles. A lesser fine of up to 2% of global revenue — still enormous — can be issued if company records are not in order or a supervising authority and data subjects are not notified after a breach. This makes breach notification oversights a serious and expensive offense.2 [Breaking Down the Costs of Cyber Attacks](https://blog.axisins.com/breaking-down-the-costs-of-cyber-attacks) [The Errors and Omissions Exposures of Insurance Agencies](https://blog.axisins.com/the-errors-and-omissions-exposures-of-insurance-agencies) Search ### Share this post [![Share on facebook](https://7528309.fs1.hubspotusercontent-na1.net/hub/7528309/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.axisins.com%2Fgdpr-regulations-and-cyber-liability%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.axisins.com%2Fgdpr-regulations-and-cyber-liability%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/x-twitter-color.png?width=24&name=x-twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.axisins.com%2Fgdpr-regulations-and-cyber-liability%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.axisins.com%2Fgdpr-regulations-and-cyber-liability%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) [![Share on email](https://7528311.fs1.hubspotusercontent-na1.net/hub/7528311/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/email-color.png?width=24&name=email-color.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Fgdpr-regulations-and-cyber-liability%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fblog.axisins.com%2Fgdpr-regulations-and-cyber-liability%3Futm_medium%3Dsocial%26utm_source%3Demail) ### Recent Posts ### Categories - [E&O (19)](https://blog.axisins.com/tag/eo) - [Cannabis (11)](https://blog.axisins.com/tag/cannabis) - [Company News (1)](https://blog.axisins.com/tag/company-news) ![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/art2.png) ### Connect to Our Cyber Hotline & Resources [Connect](https://www.axisins.com/products/cyber-liability-privacy-network-security/cyber-hotline-resources/) Please see our [Privacy Policy](https://www.axisins.com/privacy-policy) to understand how Axis Insurance Services handles your personal information. California Residents are entitled to specific rights which can be outlined on our Notice for [California Residents](https://www.axisins.com/california-privacy-policy). You may request information regarding our privacy policy or update your preferences by contacting us directly at 201-847-9175 or by completing the Request for Information on [Privacy form](https://info.axisins.com/axis-request-for-information-on-privacy). ### Schedule a Consultation ### Stay tuned with us on social networks! [![AxisInsurance](https://blog.axisins.com/hubfs/files_2023/logo.png)](https://www.axisins.com/) 795 Franklin Avenue, Suite 210 Franklin Lakes, NJ 07417 Phone: [201-847-9175](tel:2018479175) Fax: 201-847-9174 [www.axisins.com](http://www.axisins.com/) ### Quick Navigation - [Home](https://www.axisins.com/) - [About Axis](https://www.axisins.com/about-us/) - [FAQs](https://www.axisins.com/faqs/) - [Blog](https://www.axisins.com/blog/) - [Site Map](https://www.axisins.com/site-map/) - [Contact Us](https://www.axisins.com/contact-us/) - [Privacy Policy](https://www.axisins.com/privacy-policy/) - [Terms & Conditions](https://www.axisins.com/terms-conditions/) - [Accessibility Statement](https://www.axisins.com/accessibility-statement/) - [State Licenses](https://www.axisins.com/state-licenses/) Copyright ©2022 – 2024, Axis Insurance Services, LLC In California and Texas as NJ Axis Insurance Services, LLC. In Illinois as Axis Insurance Services of New Jersey, LLC. In New York as NJ Axis Insurance Agency New Jersey Corporate License #OP-9948294. California Corporate License #OD-79693. Axis Insurance Services, LLC is not affiliated with Axis Insurance Company, Axis Capital, its subsidiaries, or affiliates in any way.