Commercial Cyber Insurance Coverage for Businesses in Ontario
Many businesses operating in today’s digital landscape are prone to cyber risks which include ransomware, spyware and malware.
You can insure your company from cyber exposures through adding specific endorsements to your insurance policy or through purchasing a standalone cyber policy.
What is Cyber Security Insurance?
Cyber liability insurance helps cover the costs related to cybercrime that involve your technology systems and data. As businesses move increasingly online, cybercrime is becoming a more common occurrence. This makes it a challenge for businesses to keep up and protect themselves from cyber attacks that keep on evolving.
If hackers or other cyber criminals are allowed to infiltrate your business’ network, this could spell disaster. They can take over your business’ website, hold you and your clients’ data hostage or steal sensitive client information. The worst part is you can be held liable for the incident on top of needing to take care of the costs of recovery.
Does my business need cyber risk insurance?
It’s a definite yes if you:
- Have a website, particularly an e-commerce website;
- If you record and hold electronic customer records, especially if these include sensitive information like payment or personal information;
- If you provide software or hardware services to clients;
- If you use point-of-sale systems;
- If you rely on your online systems and data to operate;
- If you pay your employees using direct deposit; or
- And more.
What happens if my business gets hacked?
Over half of businesses that get hacked do not survive past 6 months after the event. The key to dealing with a hack is to identify the issue as quickly as possible and take the right steps in order to minimize any damage to your business and customers.
At James Campbell Insurance, our brokers work with the best cyber insurers out there. They not only help to cover the payment for your losses, but they are the recruiters of a cyber-recovery team of experts who can help you with IT security, data forensics, privacy law, public relations, negotiation and more. All of these professionals are able to help you navigate through this difficult time for you and your business.
In terms of damage, it will depend on the type of cyber-breach that occurs, the size of your business, what industry you are in, how many customer records you have and how long it takes for you to identify and fix the breach. In general, the average cost of a breach is around $270 per customer or prospect within your database. Therefore, if you have 700 customer records, a breach could cost you around $200,000.
What does Cyber Liability Insurance cover?
Cyber liability insurance will usually include coverage for the legal costs and damages related to the following:
Incident Response Cost
This refers to the coverage for the cost of access to a 24/7 cyber incident response hotline and team to help you in coordinating an incident response following a breach.
Legal, Forensic and Breach Management
This is coverage for legal advice, notification fees, crisis management services and credit monitoring.
System Damage and Restoration Costs
This covers the repairs and restoration of the software systems that sustained damage during the cyber attack.
System Business Interruptions
Coverage for any losses sustained due to a system outage as a result of a cyber attack.
Social Engineering
This is typically optional coverage, but should any of your employees get deceived into providing access to your online systems or into sending funds to a fraudulent bank, this coverage will help you with the recovery costs.
You can also opt to purchase cybercrime insurance in addition to cyber liability insurance in order to give your business coverage for any loss of funds due to cybercrimes like phishing, hacking or social engineering fraud. This type of cybercrime insurance policy will include coverage for your notification costs, data restoration and any associated legal expenses.
What doesn’t Cyber Security Insurance cover?
Your cyber security insurance doesn’t usually give you coverage for damage or loss regarding:
- An employee hacking or damaging your systems or data;
- Any power surges or failures resulting in damage to your online systems or data (this is typically covered in your Equipment Breakdown Insurance); or
- Any patent or IP infringement (as this coverage is a separate purchase).
Why Choose James Campbell Insurance for Your Cyber Insurance Coverage?
At James Campbell, we put you first. Our clients are our top priority and the backbone behind everything we do.
We can help provide you with protection from insuring your first car, your first home or business or even giving you protection during your retirement travels. Whatever you need coverage for, we’ve got your back. We will make sure that you are ready to live a life free of stress or worry so you can focus on life’s important moments each and every day.
James Campbell Insurance Brokers have been taking care of our members for over 40 years. This is why we are able to make insurance easy by offering you the right solutions at the right times. Our solutions are tailored to fit your individual needs, no matter what they may be.
