Cyber Liability Insurance

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Cyber liability insurance designed for your business

Cyber insurance is a requirement in today’s digital world. All businesses use the internet, which makes you vulnerable to increasingly complex cyber threats. All it takes is one stolen smartphone or a hacked email to wreak havoc. These are not the only costs. A data breach could cost you your reputation and the trust of your customers.

Businesses rely on IT solutions for operations that require protection against cyber vulnerabilities. From desktop computers to mobile devices, and cloud computing, there is no shortage of things you need to protect. Since no system is 100% infallible, cyber liability insurance will help protect against potential threats to your Canadian business.

Cyber liability insurance highlights

Cyber insurance is optional but is beneficial for all businesses.
Standard business insurance policies have minimal coverage for cyber-related attacks and resulting liability and loss.
Cyber liability insurance covers data breaches, hacks, extortion, compromised networks and other online threats.

What is cyber liability insurance?

Cyber liability insurance protects your business from financial losses, disruption and reputation damage. It protects you when there is a system failure or your IT system is under attack. Some insurers may refer to this coverage as simply cyber insurance or:

Cyber security insurance
Cyber risk insurance
Cyber crime insurance

Whether you are a corporation, regional enterprise, local or home-based business, online digital threats are very real.

If criminals hack your network, hold your website hostage, or steal confidential information, you’re liable. You will have to pay recovery costs. You are in danger of legal action from other affected parties - customers, clients, and business partners.

It can be confusing for organizations to understand the type of protection they require. Our commercial insurance brokers work with you to explain the threats to your business. We’ll help you get a policy to protect your company from these vulnerabilities.

Does your business need cyber insurance?

man at her credit card in front of laptop

Any small business could be the victim of an online attack. Not just businesses in the IT field. Cyber insurance has become a necessary requirement if you handle sensitive information. You need coverage if you use a computer or point-of-sale devices, store customer data, or use the cloud. You’ll need coverage if you handle :

Payment information (credit card numbers, bank account information)
Customer information (name, email, phone, address)
Medical records
Financial records
Government documentation (SIN, driver’s license, health card numbers)
Business and trade secrets

Do you store any of this information in digital format? Do you house it on an internal database or server? If you use computers to run your business, you are exposed. Standard commercial general liability insurance does not cover cyber threats.

Cyber insurance will protect you if compromised

Cyber insurance can’t prevent a cybercrime or risk from occurring. But, it will help your business post-attack by maintaining your financial stability. It provides financial and legal protection if you’re compromised.

Kim Lindros and Ed Tittel from cio.com says :

"A cyber insurance policy, also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security hack or similar event. With its roots in errors and omissions (E&O) insurance, cyber insurance began catching on in 2005."

What does cyber insurance cover?

Cyber coverage goes above and beyond what is included in a standard small business insurance policy. You may have some coverage if you have professional liability insurance.

Cyber coverage provides first-party insurance, third-party liability, and expense recovery from a breach.

The first-party policy provides coverage for the costs of responding to and recovering from an attack. The third-party policy covers the costs associated with legal claims and helps protect other businesses impacted.

With cyber plans, you can get:

Protection for data breaches: This covers customer privacy and stolen data. It includes expenses such as legal fees, credit checking and fines.
Media and multimedia liability: This covers third-party damages for intellectual property rights infringement or website defacement (attack on a website).
Extortion liability insurance: Losses due to extortion associated with information technology systems.
Network security: Damages to third parties caused by denial of access. It also covers fees related to data on third-party suppliers or theft of data.

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Plans may also cover other expenses such as:

Assessments of the cause and incident response
Business losses because of the attack
System restoration costs
Investigation fees
Privacy and notification costs
Lawsuits and legal proceedings
Regulatory fines

Cyber liability insurance claims examples

You’ve likely heard about significant data breaches affecting all types of companies, such as credit card companies, digital services providers, social media sites, and tech companies. These same types of attaches could impact your business. Here are some cyber insurance claims examples:

An employee receives an urgent email that looks like it is from the company owner. They open the email and click the link, allowing hackers to access the company server.
A hacker gains access to your system, locks everything down and requests a ransom to give back access.
An employee uses an unsecured internet connection, exposing essential customer data.

How to get cyber liability insurance

Tell us about your cyber insurance needs. Our cyber coverage experts will find you the best plan and quote from the top providers in Ontario.

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Provide some details about your company and requirements.

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What are the types of cyber insurance?

Cyber policies can be general or catered to your specific industry. They protect everything from legal liability, direct loss, and other losses from data and security breaches. You can integrate all plans into your current plan.

Some of the flexible coverage options include:

Third-party (liability) and first-party coverage
Cyber theft and extortion
Network security liability and network extortion
Data asset protection
Virus & hacking liability
Electronic data breach liability and electronic media liability
Physical/paper record breach liability
Privacy notification and mitigation costs
System and data restoration costs

How much does cyber insurance cost?

Premiums can be hundreds of dollars to tens of thousands of dollars per year because there is a vast difference in data usage and company size. Generally, standalone cyber policies can range from $500 to $1,000 annually. Policies and risk are scaled based on the many factors when determining the cost. They include:

Type of policy
Plan limits
Company size
Your industry and business type
Type of data stored on your network
The amount of data stored
Risk mitigation and security measures taken
History of cyber-attacks
Employee training
And more

What are the cyber insurance requirements from insurance companies?

Before issuing a policy, cyber insurance companies have a checklist of requirements businesses will need to meet. Insurers want to ensure businesses are taking steps to reduce cyber risks. These requirements can vary by provider but typically include:

Multi-factor authentication (MFA)
Data backup systems
Cybersecurity training for employees
Incident response plans
Identity access management
Network security
Privacy controls

Completing the above can also help reduce your cyber insurance premiums.

What to look for in cyber insurance coverage

Here are questions to ask when comparing quotes and options:

What threats does my business need protection against?
Should I get a customized policy, or will a standard solution suffice?
Are the solutions scalable and flexible?
How much is the deductible?
What are the coverage limits? What does it provide compensation for?
What types of attacks or actions are exclusions in your policy?
Is the coverage a stand-alone policy? Or is it an extension of my current policy?

Be clear about what is and what is not part of your protection.

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Tee Vee

2024-06-25

Sohel helped us apply for insurance and got everything done super fast and efficiently! Thanks Sohel!

The Jordan Family

2024-06-20

Solely was an absolute pleasure to work with. He was very knowledgeable and quick to respond. He had my new policy up and ready in the course of an afternoon, not to mention the best rates out all brokers I came across. I highly recommend this man and his customer service. 5 star service indeed!

Jade W

2024-06-17

Bailey went above and beyond. Was insanely patient with my scatter brain and a million questions. He explained everything to a point of actually understanding vs "that other" company that made me feel like a child for not understanding their legal ramblings. I appreciate you!!!!

Erfan Javid

2024-06-14

I worked with Sohel, and he put in an incredible effort for me! Sohel is an amazing insurance broker who was very helpful and honest. Communicating with him by phone and email was effortless, and he completed all my insurance paperwork without any hassle. I had insurance sorted out with just one phone call and one email thread.

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2024-06-13

Thank you Bailey, for your help in getting my auto insurance policy sorted out after the non-payment cancellation. I really appreciate the effort you put in to ensure everything was taken care of quickly.

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2024-06-12

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2024-06-11

I had a great experience with my broker, super knowledgeable dude helped me get back on the road quick and clean.

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2024-06-10

Working with Todd was a pleasure. It was very easy communicating with him by phone and email. He was able to complete all my insurance paperwork with no hassle. Thank you are the best .

Cyber insurance FAQs

How much cyber insurance do I need?

This is a common question many struggle with. The amount of protection you should have depends on:

Your information systems
The type of data and information you deal with
Your risk profile
How likely you are to be a target
How much you stand to lose if a hacker compromises your company’s IT system

Your needs will change over time. Growth, new types of threats and other factors will impact your requirements.

What does cyber insurance not cover?

What is and is not covered depends on your plan details and insurer. It commonly does not cover:

Loss of intellectual property
Future lost revenue
Attacks because of poor security protocols
Attacks due to lack of compliance and failure to meet regulatory standards
Betterment

Speak with your insurer to be clear about exclusions.

Is cyber insurance available for individuals?

Personal cyber insurance policies are available to individuals not in business. Additional protection can be added to your home insurance policy. However, if you are a solopreneur, freelancer, or independent consultant, you can add cyber coverage to protect your business ventures.

Can I get cyber insurance online?

Yes. You can request a quote online through the ThinkInsure website. Answer a few questions about your coverage, and our experts will follow up with you.

Is cyber liability insurance worth it?

Yes. The number of cyber-attacks is on the rise. All businesses are at risk. The costs can be significant. It gives you the resources to recover quickly. Policies can be a lot more affordable than you think. The peace of mind alone will give you confidence knowing you have protection.

Is cyber insurance necessary?

Just like other threats, a cyber-attack can stop operations. Most companies are unable to recover financially from a breach. Even minor infiltrations can cost thousands of dollars to recover. You will help offset recovery costs and protect your company's financial stability.

How to reduce cyber threats to your business

Cyber insurance is an effective resource to help you recover from a cyber attack. However, you should have a cyber threat management plan to reduce the risk of a breach. Cyber policies serve to complement digital security measures. The Insurance Bureau of Canada (IBC) recommends you take these steps to safeguard your organization:

Create an incident report plan
Use strong user authentication
Back up and encrypt all data
Ensure all software is up to date
Train your employees how to avoid data breaches
Ensure your website is secured and uses up-to-date data safety protocols
Have access and authorization restrictions in place to protect sensitive data
Ensure all devices are secured
Use firewalls and virus protection
Work with reputable cloud and software providers
As they say, “An ounce of prevention is worth a pound of cure.” It's easier to stop something from happening than repairing the damage after it happens.

Get a cyber insurance quote today!

We’ve all heard the stories of companies experiencing significant security breaches and the fallout from these events. Don’t be the next to experience a data breach without protection. Contact us today to get a cyber liability insurance quote.

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Cyber Insurance in Canada

Make sure your business is protected against hackers and cyber crimials with cyber liability insurance.