DENMARK Law and Practice Contributed by: Josefine Movin Østergaard and Johannes Hedegaard, Bruun & Hjejle
ability-disclosure and product-governance require- ments under the Sustainable Finance Disclosure Regulation (SFDR). 8.3 Data Protection Laws Data protection is governed by the GDPR, supple- mented by the Danish Data Protection Act ( Data- beskyttelsesloven ). Insurance companies are also subject to confidentiality obligations under Section 82 of the Danish Insurance Business Act ( forsikrings- virksomhedsloven ), with violations subject to fines or imprisonment. Together with Denmark’s implementation of the NIS2 Directive and DORA for financial entities, these requirements make cyber risks a significant govern- ance and litigation exposure. Underwriters place greater emphasis on demonstrable controls and may adjust premiums, retentions and exclusions accord- ingly. Cyber incidents require fast, coordinated claims handling, including compliance with the GDPR’s 72-hour breach notification requirement. In regulatory, coverage or compensation proceedings, the central issue is generally whether the organisa- tion implemented security measures appropriate to the risk. Litigation strategy therefore depends on documented risk assessments, incident decisions, and consistent correspondence with regulators and insurers. 8.4 Data Centres Denmark has traditionally been regarded as an attrac- tive jurisdiction for data centre projects owing to its cool climate, high security of supply, large share of renewable energy, well-developed district heating net- work and strong rule of law. The Danish TSO Energinet began positioning Denmark as a future data centre hub as early as 2017, building high-voltage substa- tions in preparation for connecting data centres to the transmission grid. Insurance premiums tied to data centres are expected to rise. Data centres are no longer treated as con- ventional property risks but rather as highly technical assets central to national digital economies. It will be necessary for the insurance market to respond with
specialist products, higher capacity, and more sophis- ticated underwriting standards. 8.5 Social Media Risk Social media addiction and related mental health impacts have not yet given rise to a distinct catego- ry of claims in Denmark, though international litiga- tion – particularly US class actions against platform operators – signals potential future exposure. Near- term Danish exposure is more likely to arise through established liability lines: media-liability policies may respond to defamation and privacy disputes amplified online; cyber and privacy cover may be engaged by data breaches or misuse of personal data; and profes- sional-indemnity or D&O cover may be implicated by influencer campaigns or corporate communications. Insurers are monitoring international developments – including regulatory action and US litigation outcomes – but specific underwriting exclusions or premium adjustments for social media-related mental health claims have not yet become standard in the Danish market. 8.6 Next Generation Nuclear Next-generation nuclear technologies create novel exposures that existing frameworks are not designed to address. In Denmark, uncertainty over whether the current limited-liability regime or the dormant 2008 amendments to Act No. 993 – which provide for unlim- ited operator liability and EUR700 million in mandatory insurance – would apply makes these risks difficult to price. Potential disputes may concern environmental remediation, latent injury, policy triggers, and recourse against technology vendors under the channelling principle. Given Denmark’s lack of a domestic nuclear insurance pool, any deployment of small modular reactors would depend on international nuclear pools, foreign reinsur- ance, and potentially state-sponsored solutions.
100 I NSURANCE L I T IGATI O N 2026
CHAMBERS.COM
Powered by FlippingBook