Cybersecurity is relatively new on the insurance landscape, but within the past decade, Cyber Insurance has quickly become one of the most important considerations for any business. In an increasingly digital workplace, many businesses rely heavily on computer systems and digital networks to store sensitive client, employee and third-party data. While these systems may allow for a great deal of convenience, they also expose businesses to tremendous risk from hackers and data breaches, which can be costly and time-consuming situations. For the uninitiated, the world of cybersecurity can seem overwhelming, but you can rely on the Nicol Insurance team to help you understand the risks facing your company while guiding you towards the right policy choices to keep you protected with Business Cyber Insurance.
What is Cyber Security?
Cyber Security covers all of the safeguards a company has against losing sensitive, private or privileged data. When that information is entrusted to your company but becomes lost, stolen, or accidentally made public, your company is facing a data breach, which can be very damaging to your business and reputation.
These data breaches most often occur through employee or contractor negligence, lost or stolen laptops, smartphones, USBs, backup drives and paper records, as well as malicious or criminal insiders, malware and hacking. These types of data breaches are common for any size of business today, but the most vulnerable are small and mid-level companies that don’t have modern computer systems and IT protections in place. In fact, nearly 65% of all data breaches in Canada happen to small businesses, simply because they don’t know how to properly protect their data.
Additionally, as technology evolves, so do the techniques of cyber-criminals. We now live in a world where computer and network systems need to be replaced every three to five years in order to remain effective, and the same is true of your cybersecurity. You can install the best data security measures in the world, but without proper maintenance and upgrades, what were once unbeatable counter-measures quickly become obsolete. There is no “one and done” solution for cybersecurity, so it’s important for business owners to be diligent, and speak to their insurance broker frequently to make sure they have the proper protections in place.
While having the right technology and security measures will help protect you, they are by no means a guarantee. Cyber-criminals are constantly upgrading their technology and techniques as well, meaning a data breach can happen at even the most secure companies. A data breach is always alarming, but it is how you respond afterwards that will make or break your business reputation.
What does Cyber Coverage do?
Cyber Coverage, or Data Compromise coverage, helps your company respond to data breaches and cybersecurity attacks. The first and most important step to safeguarding your reputation is to notify everyone affected by the breach. The right data compromise coverage will cover the cost of these notifications so that your clients and partners are informed quickly and properly, which will save you a great deal of time while dealing with the fallout from a breach. This coverage also provides a number of invaluable services when you’re facing a breach, including investigations and case management, crafting and releasing fraud alerts, notifying the Office of the Privacy Commissioner of Canada and any other regulatory authorities, identity restoration and public relations services.
You can’t always avoid cyber-attacks and data breaches, but the right insurance policy will keep them from crippling your company and helping you to right the ship quickly. Remember, technology changes quickly, and cybersecurity coverage changes just as fast. Speak to your Nicol Insurance broker regularly to make sure you’re as secure as possible. We work with a number of insurance providers to make sure your coverage suits your business! Call us and let’s make sure you have the Cyber Coverage that’s best suited to your business.
