With the increasing dependence on technology for business operations, cyber security has become a crucial aspect of any company’s risk management strategy. Cybercrime Canada statistics show that a staggering 60% of small and medium-sized businesses do not recover after a cyber attack or security breach. This is where cyber insurance comes into play.

Cyber insurance products provide insurance coverage against losses resulting from cyber events such as data breaches, cybercrime, and other cyber-related incidents. These policies include coverage for data restoration, business interruption, and liability protection in case of legal action.

As businesses of all sizes face potential exposures from cyber risks, it’s important to have a strong cyber policy in place. A cyber policy can help mitigate the financial losses and reputational damage that can result from a cyber attack.

While cyber security quotes may vary depending on the size and type of business, the investment in cyber security insurance is worth considering. With the rise of cyber threats and the increasing amount of information stored and transferred electronically, the value of cyber liability insurance continues to grow.

In today’s world, a stolen laptop or data breach can instantly compromise the personal information of thousands of customers. Thus, protecting your business from cyber liability is just as important as protecting against more traditional risks that are covered in commercial general liability policies.

Read this cyber insurance real world example.

Do you handle:

• Customer payment, credit or bank account information?
• Social Insurance (SIN) or driver’s license numbers?
• Customer and employee names, email addresses, phone numbers, and addresses?
• Personal information and sensitive data?

If you answered “yes” to any of these questions, then you could benefit from comprehensive cyber insurance and cyber risk management from a cyber insurance broker.

• The direct cost of responding to and managing the incident.
  
• Coverage for lawsuits or claims.
  

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.

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.

Ransomware and similar malicious software are designed to steal and withhold key data from organizations until a steep fee is paid.

In the wake of a cyber incident, businesses often seek legal assistance. This assistance can be costly.

Cyber insurance starts at $550 per year. Companies holding financial data or healthcare information can expect to spend $1,000 per year or more.

An average Cyber liability claim is $295,000.

When cyber attacks like data breaches and hacks occur, they can result in devastating damage. Businesses have to deal with business disruptions, lost revenue and litigation. As a result, cyber liability insurance has become an essential component to any risk management and cyber security program.

Contact CMB Insurance Brokers today to create an incident response plan and learn about the Cyber Insurance solution that’s right for you.

Read more about Cyber Insurance:
Cyber Liability Data Breach Insurance
Detecting and Overcoming Cryptojacking
Cyber Risks: Protect Your Email
Understanding Mobile Payment Risks
Policies to Manage Cyber Risk
How to Prioritize Cybersecurity
Overcoming Cyber Threats in a 5G World
Cyber Risks & Liabilities