WHAT IS CYBER LIABILITY INSURANCE?
Cyber liability insurance goes by many names these days: Cyber Insurance; Cyber Security, Cyber Risk, Hack Insurance and others. However, the intent of all of these polices remains the same: a cyber insurance policy is an insurance product used to protect your business from data breaches on your computer system(s), potentially exposing client information.
WHAT DOES A CYBER LIABILITY INSURANCE POLICY COVER?
- Comprehensive Cyber Liability: Combines third-party (your customers/clients) cyber liability and first-party (you and your business) cyber crime expense coverage.
- Theft and Fraud: Covers destruction or loss of digital data resulting from a criminal cyber event.
- Business Interruption: Covers lost income and related costs when unable to operate due to a cyber event or data loss.
- Extortion & Ransomware: Provides coverage for costs associated with payments to those who threaten to disclose sensitive information.
- Forensic Investigation: Covers the legal, technical and forensic services necessary to assess whether a cyber attack has occurred and assess impact of the attack.
CAN MY BUSINESS AFFORD CYBER INSURANCE? Cyber insurance cost
While the most prominent cases report have been attacks against large companies such as Target, Sony and Home Depot; in fact, 43% of attacks are occurring against small businesses. Of the small businesses attacked, 60% never recover after a hack and go out of business within 6 months because of a lack of cyber security. Starting from just $300 CAD annually, with limit options up to $1,000,000.
Front Row Insurance’s Hackinsure provides protection against a range of online hazards – peace of mind is available online in five minutes with no need to talk to a broker.
TYPES OF CYBER CRIME:
- Phishing – Obtaining valuable information such as a credit card details or passwords by posing as a trustworthy company (e.g., a supplier) via email.
- Ransomware – When a company’s computer system is infiltrated by a malicious program that encrypts its files and demands a ransom (typically in Bitcoin) to return the data.
- Social Engineering – Criminals impersonate an executive of a company in an email in order to obtain a money transfer or sensitive data from an unsuspecting employee. These emails are often targeted to junior employees, who may be more susceptible due to lack of training or fear of not responding to the senior executive who was impersonated.
WHAT ARE SOME WAYS TO SAFEGUARD AGAINST A CYBER ATTACK?
Now more than ever, it’s important you protect yourself in every possible way. Here are a few additional tips we share with all of our clients, to help guard against the risk of a cyber attack:
- Developing a password strategy: Using the same password across many devices and accounts is the easiest way to compromise security. Once a hacker gets their hands on a password, they can use it to compromise employee information as well as customer data, turning a single password breach into millions in damage.
- Avoiding collecting or storing payment information: Outsource payment processing and avoid collecting customer payment information such as credit card info on your own. Dedicated security staff have the resources and tools to protect data better than you can.
- Educating your employees: It may seem like common sense, but it’s not always. Develop a written policy about security & privacy and make sure employees are on board and understand their responsibility to protect confidential data. No business is “too small” for a hacker; the more prepared you are, the less at-risk you are.
- And, of course, purchasing Cyber Liability Insurance: 90% of small businesses do not currently have cyber insurance. You need to know that your business will be protected against any security breaches. Our new product provides this protection. You can get insured online in just a couple of minutes:
About: Front Row Insurance Brokers Inc. is an independent insurance broker that provides cyber and office insurance for the lowest possible cost in addition to arranging custom policies for the entertainment industry. Should a claim occur, Front Row ensures that their clients receive the money they are owed per the insurance policy, as quickly as possible. Front Row has offices in Vancouver, Toronto, Montreal, Halifax, Los Angeles, New York, Nashville.