Cyber Awareness Month: Stay Safe Online

Almost daily, another headline appears about organizations suffering from unintentional data breaches, like losing a laptop or external hard drive, or intentional criminal acts by others, such as database hacking or computer hijacking. These incidents cost organizations billions of dollars a year in lost productivity, notification costs, legal expenses, fines and reputational damages.

Cyber insurance has become a crucial part of risk management for businesses. With increased remote working options caused by the pandemic comes increased cyber exposures as employees are using personal devices through less secure home networks. Cyber security training and appropriate insurance coverage is key to reducing the likelihood and consequences of cyber incidents.

DOES MY BUSINESS NEED CYBER INSURANCE?

Under strict government legislation, organizations must report any breach of personal information, and failure to comply can result in extremely steep penalties. This information includes anything that can identify an individual — even just name and address. Therefore, any business that has customers, or even uses the internet, could face a privacy breach or cybercrime event.

WHAT COVERAGES DOES MY BUSINESS NEED?

Megson FitzPatrick has independent brokers who specialize in placing Cyber coverage. Your broker will work with you to customize an insurance program that ensures your potential risk is well-managed and properly addressed. They will review your possibly Cyber exposure areas and then secure multiple, no-obligation Cyber Insurance quotes from Canada’s leading insurers.

WHAT IS CYBER INSURANCE?

Cyber Insurance provides coverage for many different losses, both first party (loss to the policyholder) and third party (loss to others as a result of the policyholder’s negligence). Some of these include:

FIRST PARTY

• Privacy Breach Notification Expenses.
• Crisis Management & Reward Expenses.
• Digital Theft, Digital Vandalism and Communication Disruption Expenses.
• Digital Hijacking & Extortion (including negotiator and ransom costs).
• Data Recovery and / or Data Recreation Expenses.
• Electronic Business Interruption
  (including coverage for lost income and additional operating expenses).

THIRD PARTY

• Loss to others (such as identity theft or stolen funds) resulting from a data breach.
• Loss to others as a result of system failure (such as a non-responsive security system).
• Loss to others as a result of alleged defamation or trademark / copyright infringement.
• Coverage includes both settlement /judgment and legal defense costs.

Most comprehensive Cyber Insurance policies also provide training, support and risk analysis as part of the risk management services offered by the insurer.

Check out 5 Cyber Insurance Myths Debunked, 10 Ways to Protect Your Business from Cyber Attacks, and CFC’s Infographic Stay Safe Online for more helpful tips.