Cyber Insurance

Cyber insurance is a type of coverage designed to protect businesses from potential threats like data breaches, network damage, and cyber-attacks. It generally covers costs related to recovery, data restoration, legal fees, and even business interruption costs. There is typically coverage available for first party coverage - damages to your infrastructure & data, third party coverage - damages to others.

As businesses increasingly rely on digital technology, the risk of cyber threats also rises. Cyber insurance helps to protect against these risks, including data theft, customer privacy breaches, and other cybercrimes that can cause significant financial and reputational damage.

No, cyber insurance policies can vary greatly among different insurance providers. It's essential to review the details of each policy to understand what is covered and ensure it suits your specific business needs.

Most cyber insurance policies do cover ransomware attacks. This includes the costs related to crisis management, negotiations, and paying the ransom. However, the extent of coverage can vary between policies, so it's important to check the specifics of your policy.

At this time, cyber insurance is not mandatory for businesses in Canada. However, it's strongly recommended given the increasing frequency and severity of cyber threats.

The cost of cyber insurance varies based on several factors, including the size of your business, the industry you're in, the amount of sensitive data you handle, and the security measures you have in place. As a general ballpark, most of these programs start at around $850-$1,100 per year for $500,000 to a million in coverage as a starting point.

While policies may differ, cyber insurance typically does not cover physical damage to property or equipment, bodily injuries, or potential future lost profits. Some policies also may not cover attacks that occurred before the policy was in place.

Implementing robust cybersecurity measures, including firewalls, secure password practices, regular system updates, and employee cybersecurity training, can help reduce your premium. Insurance companies may see these actions as reducing your risk, which could lead to lower premiums.

Yes, you can generally still get cyber insurance if you've been attacked before, but it may affect your premium and the insurance company may require you to implement specific cybersecurity measures before providing coverage, or prove to an insurer that you have taken significant steps to prevent similar such incidents from happening again.

General liability insurance typically doesn't cover cyber risks such as data breaches or cyber-attacks. These are usually covered under a separate cyber insurance policy. Always review your existing policies and speak with your insurance provider to ensure you have the right coverage.