Cyber Coverage for Businesses – What You Need to Know

Business Cyber Coverage Facts

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.