Cyber Insurance for Canadian Small Businesses | Cyber Insurance Canada

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What is cyber insurance? (Canada)

Cyber liability insurance goes by many names these days: cyber insurance; cybersecurity insurance, cyber risk, hack insurance and others. However, the intent of all of these polices remains the same: a cyber policy is an insurance product used to protect your business from data breaches on computer system(s), potentially exposing client information.

What does cyber liability insurance cover?

• Comprehensive Cyber Liability: Combines third-party (your customers/clients) cyber liability and first-party (you and your business) cyber crime expense coverage.
• Digital Data Recovery Costs: Covers destruction or loss of digital data resulting from a criminal cyber event.
• Business Interruption: Continuing normal operating & payroll expenses, and net profit before income tax that would have been earned had no interruption in service of the computer system occurred.
• Extortion & Ransomware: Provides coverage for costs associated with payments to those who threaten to disclose sensitive information.
• Forensic Investigation: Covers the legal, technical and forensic services necessary to assess the cause and scope of the cyber incident.
• Cyber Incident Response Expenses

While the most prominent cases reported have been attacks against large companies such as Target, Sony and Home Depot; in fact, at least 43% of cyber attacks occur against small businesses. Of the small businesses attacked, 60% never recover after a hack and go out of business within 6 months because of a lack of cybersecurity.

Front Row Insurance’s cyber insurance provides protection against a range of online hazards.

How to safeguard against a cyber attack?

Now more than ever, it’s important you protect yourself in every possible way. Here are a few tips we share with all of our clients:

• Develop a password strategy: Using the same password across many devices and accounts is the easiest way to compromise security. Once a hacker gets their hands on a password, they can use it to compromise employee information as well as customer data, turning a single password breach into millions in damage.
  
  
• Avoid collecting or storing payment information: Outsource payment processing and avoid collecting customer payment information such as credit card info on your own. Dedicated security staff have the resources and tools to protect data better than you can.
  
  
• Educate your employees: It may seem like common sense, but it’s not always. Develop a written policy about security & privacy and make sure employees are on board and understand their responsibility to protect confidential data. No business is “too small” for a hacker; the more prepared you are, the less at-risk you are.
  
  
• And, of course, purchase cyber liability insurance: 90% of small businesses do not currently have cyber insurance! You need to know that your business will be protected against any security breaches.

About: Front Row Insurance Brokers Inc. is an independent insurance broker that provides cyber and office insurance for a low cost in addition to arranging custom policies for the entertainment industry.

Disclaimer: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.