Cyber Crime and Cyber Liability
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With many businesses now having their staff work from home, and with the ever-constant news reports of hackers and cyber crime, we thought it would be a good time to revisit our blog from 2018 on Cyber Liability.
What is Cyber Liability?
Cyber Liability is a risk for businesses of any size. By simply publishing content online, many potential exposures to cyber crime exist, including electronic security breaches involving personal client/employee information and theft of electronic devices containing important and confidential data.
The possibility of a cyber liability lawsuit is a reality for most business owners, especially those that have an online presence or have employees who carry electronics that hold customer’s personal information.
6 Questions to Consider When Buying Cyber Liability Insurance (Provided by the Insurance Bureau of Canada)
- How many records containing personal information does your organization retain or have access to?
- How many records containing sensitive commercial information does your organization retain or have access to?
- What security controls can you put into place that will reduce the premium?
- Do all portable media and computing devices need to be encrypted?
- What about unencrypted media in the care, custody or control of your third-party service providers?
- Could you make a claim if you were not able to detect an intrusion until several months or years had elapsed?
Many of our Insurance company partners have launched a Cyber Endorsement that will assist in protecting you, our valuable business clients, in the event of a cyber crime involving a privacy breach or cyber liability claim. It is important to note that Cyber liability is not covered under a regular Commercial General Liability (CGL) policy.
The Cyber Liability Endorsement typically provides first-party coverage in the event of a privacy breach, including the loss, theft or unauthorized access to or use of personal customer information. In addition, some of our Insurers also offer pre and post-breach services to help minimize the occurrence of a privacy breach and to provide expert assistance in the event of a breach.
Common Endorsement Highlights Include:
- First-party coverage
- Business Interruption
- Easily added to an existing business policy
- Can be added mid-term or on renewal
Several of our Insurer partners have released enhanced privacy breach coverage, including the following:
- Expenses for mandatory reporting requirements resulting from Canadian and global legislation
- Cloud storage and smartphones are included
- Business interruption expenses resulting from a cyber extortion incident
- 60 day coverage for business interruption, with a 24-hour waiting period
- Data recovery expenses
- Third party liability coverage for your customers’ legal expenses and legally obligated compensation to others as a result of a civil proceeding
Please contact us today to speak with one of our knowledgeable commercial insurance brokers on how cyber liability insurance can benefit you and your business!
Thank you,
The Costen Insurance Team