In recent years, the demand for this type of cover has risen in Canada. This is because many firms and institutions are now protecting themselves from losses stemming from cyber-attacks which is now a modern phenomenon in the IT world. A number of Canadian government institutions have had their data breached, not mentioning Sony PlayStation Network data breach that happened a few years ago.
A breach can be costly, especially if a firm heavily relies on the data coming from different sources. This has made the sales of cyber liability insurance Canada go up, especially in the hotels and restaurants, online retail, financial, healthcare and education sectors that collect volumes of data from their clients and suppliers. However, in Canada, in case of a breach of data, the company is not required to report of such a breach, unlike in other world renowned economies in the world.
Features of a Cyber Liability Insurance
- End to End Risk Management Solution– This incorporates the insurer’s cybersecurity expertise in protecting the insured from breach or loss of data. In addition, it provides some form of advice to the insured on how to protect itself even before a breach happens.
- 24/7 Access to Breach Response Teams– The insured is able to contact the insurer’s team of specialist whenever a breach is detected. Most firms offering this type of insurance have a team of a forensic, legal and IT specialists on standby.
- Innovation– Since cyber breaches is a modern phenomenon is dynamic since each day, there comes new ways to beat cyber security measures, cyber liability insurance ought to be in the forefront in monitoring the cyber landscape, for any new ways of beating cybercrimes or hacks.
- Customized Coverage Options– Most cyber insurance covers are tailored to ensure that both the insurer and insured can respond promptly in case of a breach in order to prevent costly losses to the firm.
Cyber Insurance Liability Covers the Following
- Losses to third parties such as clients as a result of data or security breach.
- Direct damage or loss on the insured’s property, which is data in case of a breach.
- Loss of income and working capital as a result of downtime caused by a breach into the firm’s systems.
- Threats related to hacking or breaching an online system for criminal purposes such as to extort money from victims.
- Cases of copyright infringement or online defamation that may lead to financial losses to a victim.