With recent headlines announcing privacy breaches at some of the world’s largest financial and consumer-facing companies, one insurer is emphasizing the need for businesses of all sizes to ensure they are protected against the legal ramifications of a privacy breach.
“A privacy breach can happen easily – a stolen laptop, the misplacement of a memory stick, an online system gets hacked or a back-up drive goes missing,” says Peter Silk, vice president of commercial lines underwriting for Aviva Canada. “These scenarios are all too common and some of the world’s largest businesses – with multiple levels of security, have been affected. The key for our clients is knowing what to do when a breach occurs and getting help with the various provincial requirements.”
Business owners are legally required to take action hen a breach occurs, or face fees, penalties, sanctions or even civil litigation. A recent study showed that 69 per cent of Canadian companies surveyed reported a cyber crime attack in 2012.
Aviva Canada has partnered with a data risk management service provider IDT911. According to Silk, they have developed a privacy breach package that offers insurance coverage and risk management solutions designed to manage potential business impacts both before and after a breach event.
Those risk management tools include breach counselling, crisis management, notification assistance, legal support and optional services available directly from IDT911. Aviva’s liability coverage reimburses business owners for legal costs and damages resulting from a third party claim or lawsuit due to a privacy breach.
