As I opened my email this morning, I saw another announcement from one of our insuring partners announcing that they are offering cyber liability insurance. It made me think, “How many businesses out there have this potential gap in coverage?” I was left wondering why companies would not buy this valuable coverage that is relatively inexpensive.
I know why. Most people, when they hear cyber liability, think of big internet companies. It’s not! Cyber liability is really a misnomer. Today, this type of policy covers so much more. As the corporate world continues to evolve, digital has become entrenched in the way business is conducted. What business does not use at least one of the following: email, smartphones, laptops, websites, POS systems, eCommerce, etc.
If you do, then your data could be compromised … you have some exposure.
Do I Need Cyber Insurance?
Digital security company Gemalto estimates at least 276,000 data breaches occurred in Canada during 2014. Today’s digital world offers convenience, accessibility and speed but it also makes users vulnerable to cyberattacks, such as viruses, data breaches and identity fraud. A data breach does not have to be a hack of your computer system. It could be a lost laptop/tablet (with client personal information on it, or one that has access to your network), a lost USB stick etc.
As the linked story “Canadian data breaches in 2015: Big firms weren’t the only targets” points out, there is a multitude of ways for a breach to occur.
The following video from Travelers Canada also offers some food for thought.
Experts suggest that over 90% of all data breaches occur because of human error. Too often we open email and links from unknown sources or demonstrate bad password management. Education is key but, no matter how well educated we all are, mistakes do occur.
Even if you think that your risk exposure for a data breach is minimal, you would be remiss in not talking to your insurance broker. It’s called due diligence.
What Does Cyber Insurance Cover?
A Good Cyber Insurance Policy will have these four basic coverages:
- Data Breach Repair Costs (repair physical damage from hackers, legal fees and notification of customers and the proper authorities)
- Business Losses (protects in cases of data theft, which can cost thousands of dollars, and costs involved with network security once it has been compromised)
- Third-Party Liability Insurance (coverage for liability if compromised data affects other businesses or individuals)
- Coverage For Penalties And Fines (coverage for fines from government organizations and payment card processing centers if data security has been breached).
Additionally, based on your business, you may need to have additional coverage included such as:
- Cyber extortion (can also extend to protect your IT department)
- Event management
- Reputation management
- Privacy and security liability
- Third-party data protection
- Forensic and investigation costs
- Data restoration
- Crisis management
- Business interruption and loss of income
- Legal costs for liability issues like copyright infringement, invasion of privacy, and character defamation
So What Should I Do?
Risk can never be totally eliminated, but it can be minimized/mitigated with proper planning.
- Educate your Staff
- Monitor and modify business practices
- Ensure your networks have good firewalls, malware and virus protection
- Create strong passwords
- Get Cyber Insurance
At Crosbie Job, we are your Cyber Insurance experts. We will work with you to tailor your cyber insurance so that it meets your needs. Sleep Easy! We’ve Got You Covered. Don’t hesitate to contact us and put our Strength and Experience to work for you.