Imagine for a moment you own a small business. You attempt to log in to your email one morning and find your password has been changed. Next you try your point of sale system – no luck. Same goes with your business’ social media account. That’s when you realise you’ve been hacked.
Most businesses believe they are secure against a cyberattack, but the truth is that any organization with content stored online or on a mobile device is vulnerable. Data breaches are on the rise in Canada, and an estimated 30% of attacks are aimed at small and medium sized businesses.
A breach can come in any form. Whether it’s a hacker or a misplaced hard drive, the fallout from a data breaches is messy and expensive. In 2011 it was estimated that between service interruptions, setting up new accounts and notifying client bases, the average business cost of a data breach was $5.5 million.
Unfortunately, a standard business insurance policy isn’t enough to protect owners against a breach. Most commercial policies restrict coverage to the loss of physical equipment, leaving many businesses at risk of footing the bill themselves.
Fortunately, an insurance option exists to cover the fallout from a digital loss. A popular coverage option for years in the United States, Cyber Privacy Liability Insurance has only recently begun to catch on in Canada.
Providing comprehensive coverage for data recovery, business interruptions and breach notification costs, Cyber Privacy Liability Insurance is surprisingly affordable for businesses of all sizes. At SeaFirst, this coverage is available as an extension on our commercial policies. For a more detailed explanation of what this coverage offers, read on!
How Cyber Privacy Liability Insurance Protects Your Clients
Personal information has become a value commodity. The risk to stored customer data has become so prevalent that Ottawa recently introduced legislation to fine companies that fail to report data breaches to affected individuals.
With Cyber Privacy Liability Insurance, businesses are covered for client data breaches. Most policies will cover the cost of determining and notifying affected individuals of a breach, as well as costs associated with securing information after an attack.
How Cyber Privacy Liability Insurance Protects Your Business
If your equipment comes to a standstill, so does your business. Most companies will see their cash flow cut off in the event of a Cyber Attack as they scramble to recover lost data and secure access to their systems. Setting up new passwords, security and hosting takes valuable time that not all businesses (especially small businesses) can afford.
Fortunately, similar to a standard business insurance policy, a Cyber Liability Insurance policy covers business interruptions caused by a breach.
It’s also not unusual for a business to be thrust into the media spotlight after a breach, potentially damaging their reputation. Cyber Privacy Liability Insurance can recoup losses from seeing their customer base reduced and having to hire a PR firm.
How Cyber Privacy Liability Insurance Protects Your Online Content
Not all breaches involve stealing customer data. In some cases, cyber attacks can take a more malicious form, such as having private information made public, or active attempts on social media to damage a business’ reputation. A Cyber Insurance policy can provide coverage against defamatory statements as well as provide damage control for leaks and copyright infringement.
The Bottom Line
Whether you think your enterprise is too small to be a target, or you think you’re information is protected, the truth is that attacks targeting commerce are growing more sophisticated and numerous. Fortunately, Cyber Liability Insurance is a surprisingly inexpensive add-on that’s easy to extend to our business insurance policies. See how our Cyber Privacy Liability Insurance can tailor a package to meet your business’ online needs and drop by any one of our Greater Victoria locations!