Western Canadian Businesses Face Stricter Cybersecurity Insurance Requirements

written by Michael Anderson posted on September 16, 2021

Over the past few months, businesses have seen stricter liability insurance questionnaires that can frustrate their business processes. Canada’s cybersecurity issues have skyrocketed over the past few years, causing huge revenue losses for small businesses and large businesses. And as it is, every business operating online is at risk of cyber-attack. Technology continues to develop, and cyber liability insurance is crucial to keeping your business in operation. To understand the scope of cyber-attacks, let’s know what it is and how it affects businesses in western Canada.

What Is Creating The Fuss With Cyber Attacks?

Canadian regulation on cybersecurity follows a regulatory framework that focuses on ensuring all businesses have the proper insurance to cover their cybersecurity risks. Failure to understand this framework can lead to severe legal and financial consequences for any organization. Therefore, businesses need to understand this rapidly evolving law of governance to keep operating without hassle.

A cyber-attack is any intrusion of your computer systems or network. The attackers have specific goals, such as disabling the target or removing it online, while some want access to data and gain admin privileges. In any case, it has severe consequences for your systems that lead to the loss of vast amounts of money and reputation.

Other cyber security issues to look out for include malware, phishing, and denial of service. Cybercriminals have their own ways of accessing your systems and can destroy your business processes. With advancing technology, it becomes more sophisticated to reduce these potential risks, making cyber liability insurance inevitable to have as a business.

Cybersecurity Insurance

How Does Cybersecurity Insurance Work For Your Business?

Cyber liability insurance helps to protect businesses against claims that arise due to cyberattacks. Various claims come with cyberattacks that affect your business’s power in the market.

For example, after a data breach that can occur via internal or third-party service providers, you need to conduct a comprehensive investigation to find out how it happened and take the necessary steps to solve the problems it brings to businesses. There are forensic expenses associated with the attacks and to ensure you are back to normal operations. These investigation and forensics costs are enormous, even for a tiny breach. It can quickly render a properly established enterprise bankrupt if they don’t have coverage in place.

Still, your business can be a target of a denial of service attack. These are criminals who take over your systems and demand some ransom to give it back. Since most businesses operate online, some depend solely on their websites to connect with customers and make sales. When your website is the primary source of online business and leads, any attack on it will leave your business without any ability to sell. In this situation, the cost of loss in sales is a potential risk that you can’t afford to endure. Such business interruptions require insurance to cover such cyber risks and allow your business to start operating effectively after successfully combating the situation.

Cyber-Related Losses to Cover With General Liability Insurance

Many businesses in Western Canada waited too long to realize that cyber threats require insurance. The new policies got them without any, and they started looking for the best options to keep safe with strict measures.

Cyber-attack damage, nature, and scope are entirely beyond the traditional covers offered by general liability insurance. Regardless of your business, your online data is at a high risk of intrusion. It would be best to talk to professional insurance firms to help you have the project liability cover for you. Ensure they have different covers that can cover all the risks you may face after a data breach.

Cyber-Attacks Strikes to Cover

Cyber-attacks target your computer and network systems. However, their impact goes far beyond affecting your business operation, leaving it at risk of closure, losing customers, and placing your reputation in a dire situation. With proper cyber-insurance cover, you can convince customers that you have the suitable measures to come back from any breach and still operate effectively. You also show that you can combat any cyber threat to earn their trust. Here are the benefits of the coverage you ought to know:

  • Data breach coverage: the cover protects you from overall costs for all the security fixes, identity theft protection, the impact left after a breach, and the costs of any possible legal action
  • Business interruption loss reimbursement: cyberattacks lead to IT failure that disrupts all your business processes, leading to loss of revenue that will cost you money and time. The cover helps to avoid such losses in the income that occur due to interruption in the IT sector and in the cost you may need to recover from an attack.
  • Recoup the losses related to cyber extortion: your business can be a target of a ransomware or malware attack that confines your business to a hostage situation until you make a steep payment. If you have the right policies in place, you can get back the money you use.
  • Cover your forensics costs, public relations, and legal support: investigations can be costly, as discussed above. This coverage will enable you to deal with all the repercussions that come with solving an attack.

How to Get the Best Insurance Broker to Find the Right Coverage

As cybersecurity threats continue to skyrocket, you need to start using a reliable insurance policy immediately. You can find the best coverage by talking to experts who have experience and providing a convenient service in your locality.

However, it is not enough to get liability coverage without first ensuring your systems are secure and avoiding any security threat when it occurs. Having suitable security will also reduce the cost of insurance policies and enable you to work effectively.

At 365 Technologies, we dedicate our top IT services to helping small to mid-sized companies have the best IT solutions at a reasonable and fixed monthly rate. With our complete IT services, you always have secure systems. Contact us Today for a free consultation.

Watch Our Latest Tech Videos From 365 Technologies

  • How Technology Helps Entrepreneurs With Business Operations

  • Cybersecurity Awareness