What is it?
Cyber Insurance protects your business and offsets your losses in the event of a breach, like if your company’s information is stolen or exposed by a hacker, or accidentally released by an employee. This policy typically includes the following coverages:
- Legal coaching on how to handle the breach with privacy regulators;
- Funds for credit monitoring and client notification costs;
- Funds for court-awarded damages and legal fees in case of a civil suit; and
- Public relations services to manage any reputational fallout from the breach.
- Coverage for First Party Liability Expenses–when a breach happens at your own business. Your policy will provide coverage for expenses associated with: Event Support Services, Crisis Management Expenses, Network Business Interruption, Digital Asset Restoration, Network Extortion/Ransomware, Cyber Crime, Computer Replacement, and Business Interruption.
- Coverage for Third Party Expenses in the event that you’re sued by a third party whose data was compromised in the breach. This includes costs associated with Privacy Regulation Penalties, Multimedia Liability, Payment Card Industry Fines and Penalties, and more.
Why do we recommend it?
Financial Services firms are among the top targets for cybercriminals. Why? You either have the type of personal information that cybercriminals crave, or you’re a gateway to it. A breach is all but inevitable; it’s just a matter of how soon it happens. Without proper security, you risk losing permanent access to mission-critical data. Plus, if you’re found negligent in the event of a breach, Canadian Privacy Regulators could fine you up to $100,000 per violation. Then there are indirect costs, like client notification, investigation, business interruption, and legal fees. In fact, the average cost per lost or stolen record in your industry is $383. If you have even 100 clients, that means you’ll be out a minimum of $38,300 in breach expenses.
Even worse? Diminished goodwill and reputational harm from the breach might even do more harm than remediation costs, especially if you don’t take swift action or notify breach victims right away. Once you’ve lost that trust, it won’t be easy to regain, or attract new clients, employees, or even investors.
That’s where Cyber Insurance comes in. With a comprehensive policy, you can protect your company from financial loss and get ahead of a breach without losing business momentum or taking a massive reputational hit. Learn more by visiting our Cyber Toolkit below.