As of May 2, 2024 there have been over 9,400 publicly disclosed data breaches resulting in over 35 billion (yes, billion) records breached. That includes both a very large, very well-known Canadian retailer, B.C. public libraries, and even Facebook Marketplace. This, of course, doesn’t take into account the number of breaches that have not been publicly disclosed.
By now you know that the retailer in question was forced to close its doors for several days while oddly enough being able to maintain its online presence. The libraries are subject to a ransomware demand threatening to release user data if the ransom was not paid. These are situations are terrible for any business or organization to be faced with. And unfortunately, your business could be the next target.
In light of these high profile attacks we felt it was important to remind everyone, from small and large business to individual operators, of the importance of Cyber Liability coverage. From a business owners’ perspective, can you afford to have your operations shut down for a day, or worse, an extended period of time to deal with a cyber attack? Can you afford the loss of funds from a phishing or telephone scam? The answer for most is a resounding no.
The good news is that there is insurance coverage available to help you in the event you suffer an attack.
What is Cyber Insurance?
Cyber insurance will help your business if your networks are breached, computers or other mobile devices are hacked or breached, if your information is stolen, or if your systems are ransomed or corrupted. Some policies will even provide business interruption coverage if your business shut down because of a breach.
The sad truth is that the event doesn’t end with the breach being discovered and the attacked ended. The consequences can be far reaching and long lasting. There may be repairs to networks & systems, legal issues and notifications to anyone in your data base. What about your brand or business reputation? Those can take a significant hit and may permanently damage your business.
These days there are many levels of coverage available ranging from cyber enhancements to a business policy to dedicated cyber liability policy; the limits of which can range from $25,000 to millions.
What’s Included in Cyber Liability Coverage?
BREACH RESPONSE COVERAGE
Provides a wide range of services after the breach is discovered.
- Legal service Computer forensic service
- Notification service Call center service
- Credit monitoring/Identity monitoring
- Public relations and crisis management expenses
FIRST-PARTY COVERAGE
Pays specific expenses for your business’s losses resulting from a breach or system failure.
- Business Interruption
- Extortion
- Dependent Business Interruption
- Data Recovery Costs
THIRD-PARTY COVERAGE
Pays for costs that you may be responsible for outside parties.
- Third-Party Information Security & Privacy Coverage
- Media Liability
- Regulatory Defense & Penalties
- Payment Card Liability & Costs
- Data & Network Liability
CYBER CRIME
Covers you for direct loss of funds from cyber related crime.
- Funds Transfer Fraud
- Theft of Funds
- Telephone Fraud
- Criminal Reward
Insurance is the Last Line of Defence
The bottom line is that no matter how savvy you think you or your IT department are, cyber criminals are just as savvy and they are ahead of the curve. The programs and firewalls protecting your systems are reactionary and all it takes is a small window of opportunity for the bad guys to get in. While firewalls, MFA’s, anti-virus and anti-malware are your first line of defence, cyber coverage will provide you with the last line of defense your business needs.
Ready to look at your business’ cyber liability coverage? Contact Park Insurance today and one of our brokers can help set up your business with the right protection.
