Cyber-crime is defined as criminal activity that involves a computer, a mobile device such as a cell phone or a tablet, and/or the internet, all of which, are valuable tools for the majority of Canadian businesses today.
In October 2015, The Boiler Inspection and Insurance Company of Canada released results of a study that showed that 90% of Canadian businesses had experienced at least one hacking incident in the year preceding the report. An article published recently in Canadian Underwriter stated that “nearly one-half (46%) of Canadian small and medium-sized businesses believe that their organization is at risk of experiencing a cyberattack, according to a survey from a Canadian internet security company”. The later further reports that only “(26%) of those polled were very confident that their organization would be able to keep their business and its information safe from a cyberattack”.
There are many types of cyber-crimes for businesses to safeguard themselves against today: lost or stolen device, theft of hard copy files, theft of electronic data, malicious insider activity, phishing scams, ransomware attacks, social engineering, website engineering, viruses and hacking are but a few.
Cyber insurance coverage is designed to help businesses alleviate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event and assisting the business owner with compliance of data breach notification laws and requirements, as well as assisting with costs of defence, settlement or judgement (defence and liability).
Another type of Cyber insurance protects businesses against damage to electronic data and computer or network systems from a computer attack. First party coverage responds to events that damage or degrade data and systems and the costs of defence, settlement or judgment.
Cyber insurance can cover expenses related to a first party claims as well as third party claims and is available as a stand-alone policy or as an endorsement to a commercial policy.
Team Insurance Brokers knows that your customers rely on you to keep their personal information safe. We also know that your business’s reputation is what keeps you in business.
Call our commercial Team to discuss your cyber-crime exposure and get sound advise on cyber insurance coverage to suit your needs.