Cyber Liability Insurance in Canada
Data breaches and cyber-attacks can impact businesses of every size.
Does your business use e-commerce? Do you store customer data electronically? If you use computers for any purpose in your business, you could be at risk for a cyberattack or data breach. It’s imperative that you carry cyber liability insurance to protect your business, your staff, and your clients.
A cyberattack is any attempt to steal or damage data. They can range from data scraping to holding access to your systems for ransom. A data breach is when the personal information of clients, employees, the business, or third parties is stolen or made available, on purpose or by accident. These incidents have become increasingly common, with many Canadian companies dealing with viruses, data loss, network damages and information theft. Unfortunately, most traditional commercial insurance policies are designed to protect physical assets, not virtual property such as data or installed software.
That’s why Rogers Insurance is a cyber liability insurance broker offering coverage that can protect you in the event that your data or network infrastructure is compromised. Our team of expert cyber liability insurance brokers help you get cyber liability insurance quotes and can help ensure you’re protected. Get a cyber liability insurance quote today or read on below to learn more about this essential coverage.
Cyber Liability Insurance in Canada: What is Cyber Liability Insurance?
Cyber liability risks are a relatively new phenomenon thanks to the rise of technology and dependence on computers, technology, and digital communication. Your business can be held liable in the event there is a cyberattack or data breach or related incident that breaches privacy or causes damage to your clients or third parties. This includes costs incurred by victims of the attack or breach, system recovery, notification expenses, fines, and lawsuits.
These incidents can be expensive, with IBM suggesting the cost of a data breach to be an average of US$3.86 million in 2018. That’s enough to close the doors of many businesses. It isn’t just the biggest businesses that fall victim to cyber incidents. Small businesses are often more vulnerable and are targeted or experience accidental breaches as well. The Insurance Information Institute estimated that small businesses make up 84% of all data breaches.
Luckily, cyber liability insurance is available in Canada. Cyber liability insurance covers financial losses that result from cyber events such as data breaches and cyberattacks. This can include:
- Financial loss
- Business interruption
- Loss or corruption of data
- Identity theft
- Cyber extortion
- Reputation recovery
- Legal expense coverage
Keep in mind that coverage can vary depending on your individual policy, industry, and insurer. Cyber liability insurance in Canada is also always evolving, just as technology is changing.
A cyber incident can cause severe damage financially to your business. Expenses related to recovering data, notification, extortion, and lawsuits can be high. Plus, you’ll likely experience damage to your reputation and loss of income. Cyber liability insurance policies help mitigate the financial loss experienced by your business.
Some cyber liability insurance policies in Canada cover business interruption. This is also known as income interruption insurance. It covers lost income in the event you’re forced to cease operations, in this case, due to a covered cyber liability insurance claim.
It can take time to recover after a cyber event and this coverage can help your business survive the period of interruption. It can help cover wages and pay essential bills while you work to get your doors open again.
Loss or Corruption of Data
Cyber events often include loss or corruption of data. This aspect of cyber liability insurance helps cover the cost of recovering this information.
Some cyber liability insurance policies in Canada extend coverage if identity theft is involved in the cyber event. This includes help recovering personal information and covering financial losses relating to a stolen identity.
One type of cyber event is cyber extortion: this is where a cyber attacker will hold your company’s information or access to information ransom. Cyber liability insurance can provide funds to cover extortion demands or your response.
Different insurers have different rules on accepted responses to cyber extortion. Talk to Rogers Insurance cyber liability insurance brokers for more details on how to handle this type of cyberattack.
Some cyber liability insurance policies cover public relations and marketing costs to repair your business’ reputation after a cyber event such as a data breach or cyberattack.
This is the third party liability aspect of cyber liability insurance. This covers legal expenses including defence costs, settlements and awards. Keep in mind that this would be limited to certain cyber-related lawsuits.
Cyber liability insurance is still new and continued to evolve. Get your free cyber liability insurance quote from Rogers Insurance or talk to our brokers to learn more about your options.
What to Consider When Buying Cyber Liability Insurance in Canada
Your Rogers Insurance liability insurance broker can help you find the coverage your business needs. Our experts assess your business and work with different insurance companies to find the best policy for your budget and needs.
The cost of cyber liability insurance will depend on your individual business, including:
- Digital security protocols you’ve implemented to mitigate your exposure to cyberattacks and data breaches
- How many personal records your business retains or has access to and the nature of the information
- How much commercial information your business retains or has access to and the nature of the data
- Whether you have any unencrypted information in the custody of third-party providers
- Your information backup systems
- Your company password policies
- Your industry and the type and value of the business you do
- Your business’ insurance and claims history
These may not be the only factors, however, as each insurer is different. Our cyber liability insurance brokers can help you identify how you can reduce premiums while maintaining the level of coverage you need. They can also get you competitive cyber liability insurance quotes.
Risk Management for Cyber Liability
Insurance is just one way to protect your business from cyber liability threats. However, insurance should always be the safety net – you want to avoid a cyber event in the first place in order to save your company’s reputation and money as well as protect your employees, partners and clients.
Here are ways to help mitigate your cyber liability risks:
- Develop cybersecurity processes and provide training to all staff. This can include password protocols, keeping physical devices safe, and how to avoid phishing and malware. It should also include what to do in the event of a cyberattack or data breach, including notification.
- Install a firewall for your computer network from a reputable provider.
- Install anti-virus and anti-malware software.
- Use monitoring tools to identify electronic threats.
- Regularly schedule security tests and drills for the event of a cyberattack or data breach.
- Ensure information is protected and backed up securely through a cloud-based storage system.
- Following an incident, document all circumstances and response in order to learn and help prevent another incident from occurring. It can also help track your losses and is required by law depending on the size and nature of the breach or attack.
For the newest risk management practices or procedures that are tailored to your business, ask your cyber liability insurance broker. Here at Rogers Insurance, we will be able to help you determine what threats your company is exposed to and help you protect your business.
The Best Cyber Liability Insurance Brokers
Rogers Insurance has the best cyber liability insurance brokers because our experienced, knowledgeable insurance professionals know cyber liability insurance. Their number one priority is finding you the best solution for your business’ needs and budget. We work with a number of insurance companies in order to get you competitive cyber liability insurance quotes. We’re also here to help you mitigate your risks, answer your insurance questions, and help you through claims.
We value our clients and recognize that each company has different needs. Our cyber liability insurance brokers personally review your coverage, your business, and your risks. We pride ourselves in providing exceptional customer service to all of our clients. We’re your advocate and your insurance resource.
See the difference with Rogers Insurance by requesting a cyber liability insurance quote or getting in touch with us today. Our team of experts is here to help you protect your business.
Get a Cyber Liability Insurance Quote With Rogers Insurance
If you aren’t quite sure where to start when it comes to purchasing cyber liability insurance coverage for your business, request a quote through one of Rogers online forms. Our cyber liability insurance brokers will get in touch with you as soon as we can to answer your questions and provide you with a competitive cyber liability insurance quote.