Canadian businesses are shifting towards cloud-based systems and standardized software platforms, a move causing experts to warn that supply chain and infrastructure-related cyber breaches are expected to rise. Thankfully, however, the insurance business is poised to respond.
At a recent Insurance Brokers Association of Alberta convention held in Banff, the growing cyber risks organizations face and the types of protection modern cyber insurance policies should include were outlined, according to the Canadian Underwriter.
Comprehensive cyber insurance coverage for businesses should provide for a wide range of exposures, including:
Network security liability coverage to help protect businesses from lawsuits and financial losses resulting from cyberattacks, malware, viruses, or human error that compromise a company’s network or systems. A breach involving a third-party technology provider can create significant financial consequences for customers if operations are disrupted or sensitive information is compromised.
Media liability insurance, which is a specialized form of professional liability or errors and omissions coverage designed to help protect businesses against risks related to digital and print media content. It can provide financial protection if your business faces claims or lawsuits arising from the marketing, advertising, communications, or other published materials you create and distribute.
Incident response costs refers to coverage for access to a 24/7 cyber incident response hotline and a dedicated team of experts to help manage your response following a cyberattack or cybercrime incident at any time of day.
Data restoration expenses provide coverage to help restore or reclaim your digital assets.
Direct and contingent business interruption coverage assists for when critical systems go offline and operations come to a standstill. Direct or contingent business interruption coverage can help protect your business by covering actual income losses and extra expenses resulting from a network outage or system disruption that may not be covered under a traditional business interruption policy.
Ransomware and cyber extortion coverage is designed to help protect businesses from the financial impact of digital extortion and malware attacks and can reimburse eligible expenses such as ransom payments, data restoration costs, and negotiation services.
Reputation harm and loss of income coverage covers the cost of public relations support including crisis communications, media outreach campaigns, and client notifications aimed at reducing reputational damage and rebuilding customer trust.
Common issues requiring the strength of cyber insurance
- Network security liability coverage comes in handy when organizations themselves become unintentionally involved in attacks against others. Cybercriminals are known to gain access to a company’s systems by compromising the business’s email system, and then use that organization’s infrastructure to target customers, suppliers, or business partners. They closely study internal communications and use business email accounts to carry out convincing attacks against trusted contacts.
- A recent (real) situation involving media liability is when hackers gained control of a company’s website and published defamatory information about former employees after accessing internal personnel files. The organization was later sued for defamation and slander by the affected individuals, despite them technically not being at fault. The end result was that the company had to shut down its website and completely rebrand in order to start to recover.
- Reputation harm and loss of income coverage works for if a cyber hacker masquerades as a customer and fools your employee into clicking a malicious link, which then provides access to your client’s financial information. Reputation harm and loss of income coverage covers the costs of informing these individuals of their compromised data and provides credit monitoring.
- If someone running a successful e-commerce business has their data hacked and their customers’ financial information held for ransom, ransomware and cyber extortion coverage will cover for the retrieval and protection of customers’ information.
Lane’s Insurance is here for all of your cyber coverage needs
We at Lane’s know just how hard Alberta’s business owners work to run their company profitably, keep their valuable employees employed, and protect their digital assets. However, despite best efforts, cyber criminals are very good at what they do and, unfortunately, keep getting better.
Our talented insurance brokers at Lane’s can help you keep your cyber insurance costs down and your coverage at its most optimal so you can concentrate on running your business. We work for you, not the insurance companies, and believe that customer service is still important to people. Our reputable carriers believe the same thing. As proud members of the Independent Insurance Brokers Association of Alberta, we are pleased to serve homeowners and business owners throughout Alberta. Contact us at:
- Our Calgary office
- Our Edmonton office
- Our Banff office
- Serving the rest of Alberta
