Technology continues to develop in amazing, and sometimes alarming, ways. Today, our personal relationships, work schedules and business decisions not only make use of technological
As technology advances, cyber risk grows. No business is immune to the threat of cybercrime – let our industry expertise, preferred brokers, and tailored insurance coverage help protect your company from digital disaster.
What is cyber risk insurance?
In the digital age, it becomes necessary to broaden your business coverage to protect your bottom line and your reputation. Cyber risk insurance is designed to support your business if computer networks are breached, causing information to be stolen or ransomed, business operations to be interrupted, computer systems to be corrupted, and other serious professional consequences.
Cyber risk coverage can involve things like:
- Corrupted data
- Lost devices
- Computer malware
- Stolen information
Cyber risk coverage doesn’t stop at the event, because consequences can stretch on for much longer. Aside from regaining access or recovering lost information, your business may need to deal with things like network repair, legal claims, and public relations services to help restore your reputation and rebuild trust among customers. Getting things back on track can take days, weeks, or months.
What exactly is “hacking”?
ExploitsPrograms or actions that find and manipulate security flaws on a system’s software or network software.
MalwareSoftware designed to gather information, destroy, encrypt, or otherwise incapacitate your digital network.
HumanA person who physically breaches security measures to steal or corrupt data.
Who needs cyber risk insurance?
Do you handle information electronically? Unless you’re still using pencil and paper to facilitate, record, and process transactions, your data is likely vulnerable. A business doesn’t need to be rooted in the tech sphere to be prone to cybercrime – any business that uses computers is exposed to cyber risk.
Even if you’re not handling or transmitting information electronically, your business could still be at risk of a data breach in the event of loss or damage to electronic devices that store sensitive data – like phones, laptops, or flash drives – or paper files containing the same type of information.
Hacks of big companies tend to make the headlines, but small and mid-size businesses are equally prone to cybercrime.
Cyber incidents impact companies across all industries, and they can take a variety of avenues. Email is a favourite tool among thieves trying to access your system, and once they’re in, they can unleash malware, ransomware, and other malicious programs to cause trouble.
All it takes is one targeted attack to sideline your small business. Even if you manage to get back up and running quickly, expect to face costly consequences.
In contrast to cryptojacking (where criminals mine a device for cryptocurrency), formjacking plants malicious code on a retail website to grab the credit card details of shoppers. In contrast to cryptojacking (where criminals steal power from another system to help them mine for cryptocurrency), formjacking plants malicious code on a retail website to grab the credit card details of shoppers.
Small and large companies alike can be prime targets, and you might be surprised at the amount at risk. Since this type of cyber attack is a serious threat for both businesses and consumers, people on either side of a transaction need to be wary.
Did you know?
You have a responsibility to deal with cybercrime quickly. If you fail to comply with Canada’s mandatory privacy breach reporting and record keeping laws, you could face a fine of up to $100,000.
When would cyber risk insurance come into play?
Imagine one of your employees had violated company policy by accessing customer data and selling it to a third party. Depending on the size and nature of your system, hundreds or thousands of customers could be affected.
After the employee is caught and fired (and criminally charged), you may need to hire a public relations firm to communicate with the public and work to restore trust – but even that may not be enough to avoid a multimillion dollar class action lawsuit from the affected customers.
Consider a mid-sized manufacturing business that relies on multiple computer systems to organize their metal parts manufacturing operations. A cyber criminal managed to introduce malware to all the systems, forcing the company’s IT department to spend days recovering electronic data from corrupted storage devices and repairing the computer systems to continue operations.
Each day that the business is closed is a day of lost income. But that’s not all: contract deadlines could be missed during that time, which means vendors can experience lost income and delays of their own. In the end, one malware attack could lead to an expensive loss encompassing cost of forensic investigation, legal expenses, business income loss, and even litigation from vendors for breach of contract.
Cybercrime comes in all sorts of forms. If a small professional services company was hit with a denial of service (DoS) attack, which hackers use to make a machine or network resource unavailable to the user or owner, they may have to shut down operations for a while for repairs. In this case, the work related to fixing the software would be covered by a cyber risk plan.
How can we help?
Recover rapidly with Cyber Assist – at no additional cost!
Northbridge Cyber Risk policyholders can make use of Cyber Assist services, provided by leading data risk management service provider, CyberScout. CyberScout can consult with you on proactive measures to protect your business, as well as reactive assistance in the event of a privacy breach.
Want more cyber resources? Policy holders will also have access to CyberScout’s secure website, which includes educational resources, data breach regulations, customizable templates, and self-risk analysis.
Some of the services include:
- Crisis Management
- Incidence Response Planning
- Media Relations Consulting
- Notification Assistance
- Pre and Post-Privacy Breach Services
What can a broker do for me?
An insurance broker can be your greatest asset when it comes to finding the right insurance policy. A broker brings a wealth of insurance expertise, product knowledge, and personalized service to the table, working to protect your company and your peace of mind.
Northbridge believes in the power of strong partnerships. Our preferred network of reputable brokers can help craft a comprehensive policy that’s suited to your unique business.
Are you managing your risk?
Risk is a part of life – risk management should be, too. It can be challenging to make space for risk mitigation in your daily routine, but this is a corner that shouldn’t be cut. After all, even if you have the right insurance coverage, preventing a loss is always better than recovering from one.
Risk management solutions can be as simple as improving the layout of your workspace, or as involved as launching a company-wide training program. Our Risk Services experts can help with both. In fact, we’ve made access to risk management expertise a fundamental feature in every commercial insurance policy.
Resources for Cyber Risk
In 2020, one of Canada’s largest trucking companies was hit with a series of ransomware attacks. The hacking group ended up posting this stolen data
Canadian manufacturers are undergoing a large technological change that will affect the industry in many ways. From production workflows, labour needs, and interactions across supply
*First-party cyber coverage: covers consequences that impact your business operations, including expenses related to incident response, data recovery, business interruption, and extortion.
**Third-party cyber coverage: covers consequences that impact a third-party (such as customers or vendors), including costs related to network security and privacy liability, internet media liability, and regulatory expenses.