Cyber insurance in Ontario, Canada has become an essential component of any risk management program. Businesses have to deal with business disruptions, lost revenue and litigation. It's important to remember that no organization is immune to the impact of cyber crime.

What does an Ontario cyber insurance policy cover in Canada?

Cyber insurance policies are tailored to meet your company's specific needs and can offer a number of important benefits, including:

Data breach insurance coverage
Business interruption insurance
Cyber extortion defence
Coverage beyond a general liability policy

Data breach insurance coverage

In the event of a breach, organizations are required by law to notify affected parties. This can add to overall data breach costs, particularly as they relate to security fixes, identity theft protection for those impacted by the breach and protection from possible legal action. Cyber liability insurance policies include coverage for these exposures, thus safeguarding your data from cyber criminals.

Business interruption insurance

A cyber attack can lead to an IT failure that disrupts business operations, costing your organization both time and money. Cyber liability policies may cover your loss of income during these interruptions. What's more, increased costs to your business operations in the aftermath of a cyber attack may also be covered.

Cyber extortion defence

Ransomware and similar malicious software are designed to steal and withhold key data from organizations until a steep fee is paid. As these types of attacks increase in frequency and severity, it's critical that organizations seek cyber liability insurance to help recoup losses related to cyber extortion.

Learn more:
www.scrivens.ca/blog/report-predicts-escalation-of-cyber-attacks-in-2017
www.scrivens.ca/blog/cyber-attacks-increasing-for-canadian-organizations

How does cyber insurance work?

Cyber insurance helps companies navigate through many technology-based risks that might occur, including risks associated with a company's information technology infrastructure and activities such as a systems failure event, cyber attack, or data breach.

Businesses are becoming increasingly dependent on services and applications connected to the internet, which makes them become a larger target for cybercriminals looking to exploit vulnerabilities in their systems. Every password we set, tool we use, and network we access leaves us exposed and vulnerable to cyber threats. Just like any insurance policy, you hope to never have to use your cyber policy, but when you do, it’s there.‍

‍Who needs cyber liability insurance?

Any and all companies would benefit from the increased protections cyber insurance policies provide. Whether you’re a small one-person business that stores everything on your computer and in the cloud to a company with employees working at the office and remotely, cyber policies can provide coverage and protection from cybercriminals.

Learn more:
www.scrivens.ca/blog/5-types-of-cyber-attacks-that-threaten-small-businesses
www.scrivens.ca/blog/cyber-exposures-and-the-importance-of-coverage-in-manufacturing

Why is cyber insurance important to small businesses?

Just like any other type of insurance, cyber insurance protects you and your business against potential losses and further disruptions to your daily operations. Costs associated with cybercrimes can be extremely high for a small business to afford. Small businesses are viewed as easy targets because they typically do not have the sophisticated security or IT departments larger firms may have. It’s best to protect yourself through purchasing a cyber liability policy rather than remain uninsured and hope you won’t become a victim to cybercriminals. Cyber Insurance companies provide valuable resources to small businesses and often provide their phone number to policyholders to call cyber security experts free of charge, providing proactive risk mitigation, rather than only being available when a cyberattack happens.

Learn more:
www.scrivens.ca/blog/keep-remote-employees-safe-from-cyber-threats
www.scrivens.ca/blog/88-percent-of-employees-lack-knowledge-to-prevent-cyber-incidents

How much does cyber insurance cost and how do you calculate cyber insurance?

It depends on many factors including company size, number of employees, online presence (is your business using the internet to conduct business?), how much personally identifiable information you store, how you process payments, and how you secure your computer systems (are they encrypted? What type and when do you back up your computers?). Cyber insurance companies will review all these factors and more to determine your exposure and how to charge accordingly.

Learn more:
www.scrivens.ca/blog/5-tips-for-applying-for-cyber-insurance
www.scrivens.ca/blog/noteworthy-cyber-security-news-items

Is cyber liability insurance worth it?

Absolutely, more and more claims occurring. In a recent report it was determined cybercrime costs will hit $6 trillion by the end of 2021 with over 50% of victims being small to medium size businesses. It’s been calculated that there is a business breached every 39 seconds so it’s best to protect yourself from cyber liability by purchasing a policy rather than hoping you won’t experience a cyber attack.

Learn more:
www.scrivens.ca/blog/protecting-against-online-fraud-cyber-liability
www.scrivens.ca/blog/the-biggest-cyber-security-disasters-of-2017
www.scrivens.ca/blog/criminals-hijacked-100-000-devices-in-dyn-cyber-attack‍

Coverage beyond a general liability policy

General liability (CGL Insurance) policies don't always protect organizations from losses related to data breaches. Data is generally worth far more than physical assets, and it's important to have the right protection in place when you need it most.

Supplementing your business insurance with cyber insurance can provide you with peace of mind that, in the event of an attack, your organization's financial and reputational well-being is protected.

Cyber exposures aren't going away and, in fact, continue to escalate.

Ontario businesses need to be prepared in the event of a cyber attack. Get an Ontario cyber insurance quote for your business today.

What is ransomware and how can it affect your business?

Ransomware is a type of malicious software that encrypts files on a victim's computer or network, rendering them inaccessible until a ransom is paid to the attacker. It can affect businesses by disrupting operations, causing data loss, financial losses, reputational damage, and potentially leading to legal and regulatory consequences.

How can I keep my business safe from ransomware?

To keep your business safe from ransomware, you can take several precautionary measures:

Regularly update and patch your software and operating systems.
Use reliable antivirus and anti-malware software.
Train employees on safe browsing habits, email security, and recognizing phishing attempts.
Implement strong and unique passwords, and enable two-factor authentication.
Regularly back up your important data and store backups offline or in a secure cloud environment.
Limit user privileges to minimize the impact of a potential ransomware attack.
Stay informed about the latest ransomware threats and security best practices.

What are the top causes of successful ransomware attacks?

The top causes of successful ransomware attacks include:

Opening malicious email attachments or clicking on infected links.
Visiting compromised websites or downloading compromised software.
Exploiting vulnerabilities in outdated software or operating systems.
Weak passwords or lack of two-factor authentication.
Lack of employee awareness and training on cybersecurity best practices.
Insufficient network security measures and poor access controls.

How does Cyber Insurance treat ransomware?

Cyber Insurance policies vary, but they generally offer coverage and assistance in the event of a ransomware incident. Cyber Insurance can help cover costs associated with ransomware attacks, such as forensic investigations, legal fees, public relations, and customer notifications. It may also provide coverage for business interruption losses and extortion payments, depending on the specific policy terms.

Does Cyber Insurance cover ransomware payments?

Some Cyber Insurance policies may cover ransomware payments, but it depends on the specific terms and conditions of the policy. However, it is generally recommended to avoid paying ransoms whenever possible, as it does not guarantee the recovery of data and can potentially incentivize further attacks.

How does Cyber Insurance treat ransomware incidents?

Cyber Insurance typically provides coverage for various aspects of a ransomware incident, including:

Costs related to incident response, investigation, and recovery.
Legal expenses, including regulatory fines and penalties.
Business interruption losses resulting from the attack.
Public relations and communication expenses.
Extortion payments, if covered by the policy. It is important to review the specific terms and conditions of the policy to understand the coverage and any exclusions.

Are ransomware attacks covered under business insurance?

Traditional business insurance policies such as property or general liability insurance typically do not explicitly cover ransomware attacks. Cyber Insurance policies, specifically designed to address cyber risks, including ransomware, provide more comprehensive coverage for these types of incidents. It's important to consult with an insurance professional to evaluate the coverage options available for your business.

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