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.