NIS2


 

NEW EU CYBERSECURITY REGULATION – NIS2 IS HERE!

NIS2 (Network and Information Security Directive 2022/2555), introduced by the European Union, aims to standardise and raise the level of preparedness of Member States against cyber security incidents and to create mandatory network and information security standards for relevant companies.

 

 

WHICH COMPANIES ARE AFFECTED BY THE NIS2 DIRECTIVE?

The NIS2 Directive applies to all companies that provide critical services such as energy, transport, banking, healthcare, water and digital infrastructure.

The Directive applies to companies in the sectors concerned that employ more than 50 people or have a net turnover of more than €10 million, as well as their suppliers. The compliance of the supply chains is also affected, so the risks of new partners need to be continuously identified and monitored.

WHAT DOES THE NIS2 DIRECTIVE MEAN FOR YOUR BUSINESS?

In order to comply with NIS2, the organisations concerned are required to implement strict data management and reporting protocols as well as safeguarding measures. Businesses affected by the Directive will then not only face business and economic risks from cybersecurity challenges, but could also face costly fines for non-compliance.

The NIS2 Directive sets strict requirements and deadlines for reporting incidents. If a company fails to comply with this obligation, or fails to report adequately, the authority can impose significant fines.

  • Late reporting of incidents: NIS2 sets strict deadlines and content requirements for reporting incidents. If a company fails to do so on time or properly, it may be subject to penalties.
  • Lack of ongoing maintenance of compliance: Keeping up-to-date on a number of areas such as access control, configurations and risk assessment is essential for cybersecurity systems. In case of a deficiency, for example during an investigation, the authority may impose a fine.
  • Introduction of new processes or products: If a company introduces new products, services or acquires a new company, it must update its cyber security systems immediately. Failure to do so can result in fines, as new processes pose new risks.
  • Lack of supply chain oversight: Continuous monitoring of supply chain cybersecurity compliance is of paramount importance. Failure to adequately assess the compliance of suppliers can also lead to penalties.

In the new environment, it is essential that businesses ensure that they are adequately protected against the risks arising from the requirements of the NIS2 Directive.

 

WHAT DOES NIS2 ENDORSEMENT PROVIDE?

A properly designed cyber insurance policy provides financial and expert assistance in the event of:

  • recovery or re-collection of electronic data;
  • In the event of data loss, claims from third parties;
  • costs incurred during ransomware attacks;
  • the consequences of a network outage and blackout;
  • PR and legal defence costs.

The NIS2 additional coverage also covers costs arising from non-compliance with the NIS2 Directive. Main points of cover in the NIS2 Endorsement:

  • NIS2 cybersecurity fines cover: if the company has been fined as a result of a formal investigation into a breach of the NIS2 Directive.
  • Coverage of formal investigations: the Endorsement provides coverage for the costs associated with formal regulatory investigations where they are aimed at verifying compliance with NIS2 cybersecurity legislation. This includes legal and other expert costs incurred during investigations.

HOW CAN WE HELP?

Via our international network of brokers, we offer our clients the best cyber insurance products and services. We have access to the network’s international expertise and with our strong domestic and international insurance relationships, we provide a full range of risk management and insurance solutions.

Our insurance partners are solely market-leading companies with a solid financial background, the highest underwriting capacity in the market and more than 10 years of professional experience in cyber and data protection insurance.

We provide a high level of support to our clients with fast and simplified contracting and claims management process, proactively handling administration and the liaising with insurers.

We help you to ensure that your business is as secure as possible and minimise the financial risks from cyber incidents and regulatory obligations.

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