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Cyber Liability

Cyber liability insurance is a specialized coverage designed to protect businesses against potential financial losses resulting from cyberattacks, data breaches, and other cyber-related incidents. As cyber threats continue to evolve in Canada, it is crucial for businesses to understand and invest in cyber liability insurance to safeguard their operations, reputation, and assets. According to Checkpoint Research, there has been a 38% increase globally in cyber-attacks in 2022 from the previous year.

Why Cyber Liability Insurance is Important: 

  1. Increasing cyber threats: Cyberattacks are on the rise in Canada, with businesses of all sizes and industries being targeted. Cyber criminals exploit vulnerabilities in a company’s IT infrastructure to steal sensitive data, disrupt operations, and extort money. 
  2. Financial impact: The costs of a cyber incident can be significant, including expenses for legal defense, regulatory fines, customer notification, public relations, and IT forensics. Cyber liability insurance helps cover these costs and minimize the financial impact on businesses. 
  3. Regulatory compliance: Canadian privacy laws, such as the Personal Information Protection and Electronic Documents Act (PIPEDA) dictate the obligations businesses have regarding customer data. Under PIPEDA Canadian, businesses are required to report breaches, notify affected individuals about those breaches, and keep records of all breaches. The process can be daunting and expensive, which is why insurance is a good idea!

Not all cyber insurance is created equal

  • Traditional package policies only cover third-party costs, leaving organization with coverage gaps
  • Cyber insurance now offers holistic coverage (including first-party expenses)
  • Active risk management tools and services can help reduce the likelihood of loss

Protections can (and do) fail

  • Cyber security tools are only the first step in mitigating and managing cyber risk
  • Security can fail, and your vendors, third parties, and employees can leave you exposed
  • Organizations need security and insurance to be fully protected

3rd Party Liability Coverages

Network & Information Security Liability

Regulatory Defense & Penalties 

Multimedia Content Liability

PCI Fines & Assessments

This will defend you and any damages resulting from your liability to a 3rd party are covered, or for regulatory fines & penalties, multimedia wrongful acts (such as infringement, defamation, piracy, etc.), and PCI fines & assessments resulting from a failure in your security, data breach, or privacy violation.

Bodily Injury & Property Damage – 3rd party

Costs of defense and damages from your liability to a 3rd party when a failure in your security results in physical damage or injury.

Technology Errors & Omissions

Costs of defense and damages from your liability to a 3rd party when the failure of your technology service or product is the cause of loss.

 

1st Party Liability Coverages

Computer Replacement

Replace your computer systems that are permanently impacted by malware.

Fund Transfer Fraud

Losses you incur from a failure in your security or social engineering to transfer funds.

Service Fraud

Additional amounts you’re billed by a cloud or telephony provider when you incur fraudulent charges.

Digital Asset Restoration

Replace, restore, or recreate your digital assets that are damaged or lost following a failure of your security.

Business Interruption & Extra Expenses

Financial losses resulting from a failure in your security, data breach, and even systems failure, as well as the extra expenses you incur to bring your company back online.

Cyber Extortion

Respond to an extortion incident, including money, securities, and even virtual currencies paid.

Breach Response

Crisis Management & Public Relations

Reputation Repair

3rd party incident response and public relations experts, customer notification costs and credit monitoring, media purchases, and legal fees; and advise in connection with the incident, among others.

 

Don’t let an error or cyber-attacks affect your business’s reputation and financial stability. Contact us today for a personalized quote and secure the protection your business needs.

 

List of recent cyber attacks in Canada

https://konbriefing.com/en-topics/cyber-attacks-canada.html

https://www.securitymagazine.com/articles/98810-global-cyberattacks-increased-38-in-2022

https://torontosun.com/news/national/gone-phishing-cyber-crime-on-rise-in-canada-and-its-proving-costly