Do you have questions that you’d like to ask a qualified cyber liability insurance broker? Calgary business owners can get their questions answered completely and reliably by calling the professional brokers at Krywolt Insurance. Our experienced commercial insurance brokers know all the ins and outs of cyber liability insurance and can make sure you get the coverage you need, tailored specifically to your unique business.
How Can a Data Break Happen?
There are numerous ways for a cyber breach to potentially happen. It happens when a cybercriminal successfully infiltrates a data source and steals private information. This can occur by:
- Stealing files through physically accessing a computer or network
- Bypassing your network’s security remotely
- Sending phishing emails to customers pretending to be your company
- Using a virus or ransomware to corrupt your data files
That being said, one of the biggest threats to any company is social engineering. This involves a cyber criminal tricking an employee into handing over access, money or information. Because criminals spend a lot of time thinking up and testing new methods of social engineering, it’s a lot easier to get taken in and accidentally give up important information than you may think. They can be very convincing, and some employees never catch on to the fact that they’ve been tricked.
How Can I Protect My Company From a Data Breach?
The best way to protect your company against cyberattacks is with strong internal safeguards. This means limiting access to PII to a few employees, but it’s also important that all employees have some level of training on what social engineering attacks are like and how to recognize and avoid them. Even employees that don’t have access to sensitive information, such as customers’ banking information, can still provide information like internal contacts in your company that can make it easier to carry out further social engineering attacks.
Naturally, it’s also very important to ensure that you have strong passwords on all electronic devices and install anti-malware protection. Passwords should be changed regularly, and anti-malware software needs to be diligently kept up-to-date. Two ways to help ensure that you have robust protections in place is to contract a third-party IT vendor or consider hiring an in-house information security officer.
Are Cyber Attacks Common Enough to Warrant Cyber Liability Insurance in Calgary?
Business owners sometimes assume there’s no real need for cyber liability insurance because the risk of actually experiencing a cyber attack is low. That’s certainly not the case. In fact, the vast majority of businesses—of all sizes and descriptions—experience multiple cyber attack attempts over the course of a single year. It’s actually much more likely that your company will be targeted by a cyber criminal than not, to the point where it’s basically an eventuality. Going without the protection of cyber liability insurance in Calgary because you think you’re unlikely to be attacked is a huge mistake that has cost business owners big time in the past.
Do I Really Need Cyber Liability Insurance as a Small Business?
There’s a common misconception out there that cyber criminals don’t bother with small businesses because they prefer to focus on larger targets that are potentially more lucrative. Unfortunately, nothing could be further from the truth. While there are some elite hackers out there who choose to spend what often amounts to months or years on cracking major corporations that could provide huge payouts, most cyber criminals are small-time crooks who prefer to target small companies.
The fact is, the larger the company and the more they have to lose, the more they’re likely to invest in ironclad cybersecurity measures that a typical hacker has no hope of breaching. Small businesses, on the other hand, may have less to lose, but they also often have weak cybersecurity measures in place (or none at all). So even an inexperienced criminal can waltz right past. Attacking multiple small businesses with weak security is ultimately a lot more lucrative than spending a lot of time on one large business.
Does Cyber Insurance Cover Major Cybersecurity Events?
Yes, and no. It’s best to talk to your insurance broker to understand what will and will not be covered by cyber liability insurance policies. For instance, if a cybercriminal steals PII from your company and holds it for ransom, this may feel like a major cybersecurity event for your company and would likely be covered by your insurance provider.
However, if a state-sponsored attack or catastrophic event—like another government hacks into your company’s confidential files—it may not be covered by insurance if the event is so severe it’s deemed crippling to the insurer. That said, these events are extremely rare, and many additional factors would be at play.
What Types of Data Breaches and Cyberattacks Are Covered by Cyber Liability Insurance in Calgary?
Examples of cyberattacks that would be covered by your Calgary cyber liability insurance policy include:
- Malware: When malicious software is installed on a device that is then used to access data.
- Denial of Service: When users can’t access software, their network and their computer.
- Ransomware: When personal information or network access is withheld from a user by a cyber-attacker until they pay a fee.
- Man-in-the-Middle: When communication between two parties (such as an employee and a client or two employees) is infiltrated by a cyber-attacker.
- Phishing: When an employee is tricked into disclosing information by opening an attachment or clicking a link.
- Spoofing: When impersonation is used by a cybercriminal to steal or access information.
What is the Difference Between Cyber Liability and Data Breach Insurance?
This depends on the provider. Since there is no standardized insurance policy for cyber liability, the wording surrounding your policy may vary depending on the provider. That’s why it’s integral to talk to your trusted insurance broker at Krywolt Insurance. We’ll shine a light on whether cyber liability and data breach insurance refer to the same coverage or are different policies altogether. Our goal is to ensure you have adequate protection in the event of an emergency, so we’ll be sure to be thorough as we find the right policy for your needs.
Which Factors Impact the Cost of Calgary Cyber Liability Insurance?
There are a number of factors that will affect the cost of cyber liability insurance for your Calgary business, including:
- Industry
- Size of business
- Annual revenue
- Type and amount of records and data
- Insurance options like deductibles, policy limits and coverages
What Should I Consider Before Purchasing a Cyber Insurance Policy?
It can be difficult to gauge whether your company needs cyber liability coverage. After all, nearly all businesses these days have confidential client information stored in their databases. Often, small businesses will assume that only large companies and corporations need cyberattack insurance—but this is far from the case. It’s all too easy for cybercriminals to attack local Calgary businesses, as your employees may be more trusting. For instance, if you own a retail store and employ high school students, it’s possible they may feel intimidated by a cybercriminal phishing for information while pretending to be your bank or another employee.
Before investing in a cyber insurance policy, ask the following questions and discuss your options with a qualified broker at Krywolt Insurance:
- Could you make a claim if you were unable to detect a cyber attack until several months or years had passed?
- How many sensitive commercial information files does your organization retain or have access to?
- How many personal information records does your organization retain or have access to?
- What safeguards have you put in place to reduce the risk of having your system compromised?
- Do all computing and portable media devices need encryption?
- What about unencrypted media in the custody, care or control of your third-party service providers?
How Much Does Cyber Insurance Cost?
How much your cyber liability insurance policy costs depends largely on your business’ exposure to cyber risk and your coverage needs. For instance, a small, low-risk business may only need $250,000 in coverage; a large, high-risk company may need $4 million in coverage.
What is Not Covered by Cyber Insurance?
Not every type of claim is covered by cyber insurance, which is why you need to talk to a broker who is able to find you the right coverage for your needs. For instance, the following would not be covered by a cyber liability policy:
- Property damage or bodily injury claims: Cyber liability insurance coverage won’t give you financial protection against claims of bodily injury or property damage. Rather, you need a general liability policy to cover these risks.
- Loss of property: Losing property, such as a phone or computer, due to an accident or theft is generally covered by commercial property insurance. However, losing the software on your computer due to a malicious virus could be covered by cyber insurance.
- Criminal activity: Usually, a cyber liability policy won’t protect against robbery, fraud or other crimes—unless directly related to cyber crime. To have the best coverage possible against these types of risks, you should have a commercial crime insurance policy as well.
- Employee theft: If your company is impacted by cyber crime from an internal source such as an employee, even if the crime is committed through cyber channels, it is not covered by cyber liability insurance in Calgary.
