What key cyber coverages do Canadian business need?

Generally speaking, cyber insurance protects policyholders from risks such as data breaches, hacking, and the like. But there is more to the product than simply covering the costs for damaged hardware.

Read Insurance Business’ cyber insurance guide here

Cyber incidents often leave businesses having to deal with not just the loss of their systems, but the ensuing fallout as well. Their reputation could be tarnished if they are dealing with a ransomware group threatening to blackmail them. They could also potentially face lawsuits should the cyber event lead to the theft of client data. And that’s to say nothing of the legal expenses involved in having to answer for cybersecurity liability cases.

Insurance Business’ Mark Rosanes recently wrote a guide on what Canadian businesses should be looking for from cyber insurance. Citing information from a recent poll by the Canadian Internet Registration Authority (CIRA), the guide lists down the following key coverages that businesses should carefully consider when purchasing cyber insurance:

• Forensic costs: The expenses incurred in the investigation and removal of a cyber threat.
• Liability and defence costs: Coverage against financial losses resulting from lawsuits related to network security liability; will also cover electronic media liability in cases involving copyright infringement, privacy rights violations, unintentional defamation, and interference of a person or an entity’s right to publicity.
• Legal expenses: This includes defence and settlement costs for defending against lawsuits brought by clients resulting from data breaches.
• Notification costs: Coverage for expenses associated with notifying consumers that their data may have been compromised.
• Identity theft restoration: This will pay out for the cost of recovering from identity theft.
• Reputation management costs: This will cover the costs associated with hiring a public relations firm to protect a company’s reputation following a cyberattack. It will also cover any measures the PR firm has recommended.