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

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 information technology infrastructure to steal sensitive data, disrupt operations, and extort money.

Financial impact

The costs of a cyber incident can be significant. In the event of an incident, you can expect to pay for expenses for legal defense, regulatory fines, customer notification, public relations, and IT forensics, among others. Cyber liability insurance helps cover these costs and minimize the financial impact on businesses.

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 – insurance helps manage these requirements.

Not all cyber insurance is created equal

Traditional package policies only cover third-party costs, potentially leaving organizations with gaps in their coverage.
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

What Cyber Liability Insurance offers

Third Party Liability Coverages

Network & Information Security Liability

Regulatory Defense & Penalties

Multimedia Content Liability

PCI Fines & Assessments

Legal defense and coverage for damages for:

Your liability to a third party
Regulatory fines and penalties
Multimedia wrongful acts (such as infringement, defamation, piracy, etc.)
PCI fines and assessments resulting from a failure in your security, data breach, or privacy violation

Bodily Injury & Property Damage – Third party

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

First Party Liability Coverages

Computer Replacement	Replaces your computer systems that are permanently impacted by malware.
Fund Transfer Fraud	Covers the losses you incur from a failure in your security or social engineering to transfer funds.
Service Fraud	Covers the cost of additional amounts billed by a cloud or telephony provider when you incur fraudulent charges.
Digital Asset Restoration	Replaces, restores, or recreates 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	Responds to an extortion incident, including money, securities, and even virtual currencies paid.
Breach Response Crisis Management & Public Relations Reputation Repair	Third 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 attack affect your business’s reputation and financial stability.

The content on this page is for information only. The insurance products described are subject to terms, conditions, limitations and exclusions that are outlined in the policy wording. Please refer to the policy wording for complete details.