Cyber Coverage for Businesses – What You Need to Know

Cyber Coverage is an important aspect of insurance that every business requires in the digital era. Regardless of size, any business is vulnerable to a data breach if they keep and store digital information pertaining to their customers.  A stolen laptop, lost company phone, computer hackers – are all situations that can lead to a privacy breach that can be costly for a business owner.

Business owners are often unaware of the exclusions in a typical Commercial General Liability or Business Interruption policy for cyber losses.  In such an event, a privacy breach can cost a business thousands of dollars.  Without adequate coverage, a privacy breach can lead to a downfall of a small company that is not able to absorb the costs of handling a breach.

It is not only large organizations that are vulnerable to privacy breaches.  Statistics show that about 31% of reported breaches involve businesses with less than 100 employees.

Also, the Government of Canada has introduced legislation that sets out requirements for notification if an organization were to suffer a data breach that compromised personal data.

Cyber policies can provide the following coverages

  • Crisis management
  • Public relations
  • Notifying clients
  • Credit monitoring
  • Investigation
  • Legal support

There are also various options for coverage that a business can purchase for Cyber Liability.

Having Cyber coverage in place is always a great idea, but preventing a data breach in the first place is the first step. Things you can do to prevent a data breach are:

  • Keep sensitive data out of unauthorized reach
  • Lock up sensitive Data (have a clean desk policy)
  • Restrict access to data
  • Determine what information is necessary
  • Put security systems in place
  • Require sign-in for non-employee visitors
  • Screen all employees

Contact one of our Morison Insurance brokers to obtain a quote and information pertaining to Cyber Coverage.

 

– Written by our brokers Holly and Joti

 

This blog is provided for information only and is not a substitute for professional advice. Please call our Morison Insurance brokers at 1-800-463-8074 for more information.

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