Your company uses technology every day. Malware, system glitches, disgruntled employees and other forms of cybercrime are all persistent threats that can do serious damage to your business, no matter what size of business you run.
But will this really happen to your business? There’s a good chance it will. A 2013 study on how cybercrime affects Canadian businesses conducted by the International Cyber Security Protection Alliance (ICSPA) reported that 69% of the 520 surveyed companies reported some kind of cybercrime. The total cost to these businesses was a combined $5.3 million. The majority of survey respondents were small to medium-sized businesses; cybercrime isn’t just something that happens to large corporations, even though these are usually the cases covered in the media.
The most popular forms of Canadian cybercrime
Financial fraud was the runaway leader in dollars lost due to cybercrime, accounting for just over $1.8 million of the total $5.3 million lost, mostly by small businesses. Theft of company devices with sensitive data, malware and virus attacks and sabotage of data and networks also contributed to the total.
Liability and other concerns surrounding cybercrime
Under Canadian privacy laws, your company is liable for protecting sensitive data such as credit card numbers and health information. Any breach of this data opens your business up to potential lawsuits and fines. Depending on your business, you may be handling sensitive information such as legal documents, passwords to client accounts, and more – the breach of any of which may lead to legal issues with your clients and loss of business. E-mail, social media, participation on online forums and more can also open up your business to a number of liability concerns.
Safeguarding your business against cybercrime
There are a number of security measures you can take to combat cybercrime in your business that are actually quite simple to implement. They include encrypting all data that goes through your networks, training employees on how to avoid malware attacks, and only allowing trusted senior staff access to files that include sensitive information. A number of measures are available in the Government of Canada’s Get Cyber Safe Guide for Small and Medium Businesses.
Cyber insurance will protect your business
So what can you do about it? Even if you follow every best practice in the industry for safeguarding data and your devices, you are still vulnerable to cybercrime. Cyber insurance can cover your business against a number of threats for much less than you would think.
Our available cyber liability coverage includes:
- Third Party Liability limits
- Defense costs for cases of theft or loss of personal or confidential and financial information held electronically or lost physically
- Costs incurred to notify of security breaches (mandatory in certain jurisdictions)
- Credit monitoring services for affected individuals or organizations
- Fines and penalties imposed by government or regulatory bodies
- Multimedia liability related to electronic data (social media, e-mail, website, forums, etc.), including defamation, copyright, patents and trade secrets
- Costs of equipment repair and restoration of databases
- Business interruption and extra expense
- Costs for professional Crisis Management and Public Relations
- Cyber extortion
- Errors and omissions
The typical commercial insurance package does not cover most of these items. Contact Kennedy Insurance today about adding Cyber insurance to your commercial insurance portfolio.