Insuring your business against cyber threats
Cyber-attacks on small businesses are on the rise. In fact, since these companies typically lack the resources and protective barriers needed to fend off cyber-attacks, they’re commonly targeted by hackers.
A recent poll commissioned by the Insurance Bureau of Canada found that nearly one in five business have been affected by a cyber-attack or data breach in the last two years. And among business hit by a data breach, 37% estimate that it cost them over $100,000.
Cyber insurance, also called cyber risk insurance and cyber liability insurance, is designed to cover businesses for losses caused by cyber-attacks. Here’s an overview of this type of insurance coverage.
What types of businesses require cyber insurance?
In this day and age, many companies conduct at least some of their business online, and part of their assets are in the data they collect. Any such business stands to benefit from cyber insurance. Businesses that have the most to lose from a cyber-attack are ones that rely on an online presence, engage in e-commerce and that hold customers’ personal information.
What can cyber insurance cover?
Cyber insurance can cover your business for liability in the event of a data breach. It can also cover losses your business incurs due to a cyber-attack, including losses resulting from theft, extortion (through ransomware), business interruption and electronic data restoration. The coverage is constantly evolving to respond to new threats. Speak with an insurance broker to learn about the full range of coverage options for cyber insurance and determine which are appropriate for your business.
What can you do to protect your business from cyber-attacks?
Having specialized insurance to protect your business from cyber-attacks is crucial. However, you should also follow best practices for information security in order to reduce the likelihood of a cyber-attack occurring. In particular, you should familiarize yourself and your employees with the various cyber threats (such as email scams, phishing attacks, botnets, viruses and Trojan horses) and have robust, up-to-date cybersecurity software installed on all your computer systems.
For more information on how to protect your business from cyber-attacks, consult this article from the Insurance Bureau of Canada.
Cyber insurance for your Alberta business
For customized business insurance that includes coverage for cyber-attacks, work with an experienced broker at Tailor Made Insurance. Our family-owned business provides you with comprehensive insurance products and services at a reasonable cost. For more information about our services in Sherwood Park, St. Albert, Daysland, Gibbons and Redwater, contact us today.