Evolving Technologies, Evolving New Risks

Businesses have changed considerably over the last few decades. We can now buy online, pay our bills over the Internet, and store an immeasurable amount of information on a single hard disk. Technology advances and facilitates our work, but creates new opportunities for criminals.

Have you ever wondered what would happen if a computer virus attacked your network and wiped out all your data? How long would it take you to manage the crisis and regain the same efficiency as before the data loss? Would you need to regain your customers' trust?

At present, cyber risk coverage is probably the youngest in the insurance market, but not the least important. This coverage – which can generally be added to a basic insurance policy – covers damage caused by a data breach. Did you know that in 2014, 87% of Canadian companies experienced one or more hacking incidents?[1] Did you also know that at least a third of reported incidents involved companies with fewer than 100 employees? These are rather worrying statistics in today's technological world, especially since SMEs account for 98% of Canadian businesses. [2]

Consequences of a Cybercriminal Attack:

The repercussions of a cybercrime attack can be limitless. Damage to company reputation, legal disputes, possible loss of sales and the need to improve computer network security are just a few. As a result, the costs associated with this type of attack can also soar.

In 2013, the Canadian Anti-Fraud Centre (CAFC) received over 16,000 complaints of computer fraud, representing losses of over $29 million[3]. This is for the whole country, but on a small scale, what would the financial consequences be for your business?

Generally speaking, basic business insurance policies exclude financial losses due to cybercrime. So, if you become the unfortunate victim of a virus or theft of financial information, you'll have to bear the consequences alone.

When your network is hacked and its contents made public, your company's reputation is at stake. By taking out cyber-risk coverage, not only will you have peace of mind, but so will the suppliers and customers with whom you do business. By opting for this insurance coverage, you set yourself apart from your business partners and competitors. You demonstrate that you take the confidentiality of the information you receive seriously, and that you do everything in your power to preserve it.

Scope of Protection:

On a day-to-day basis, data breaches can take many forms: theft or loss of a laptop and the data stored on it; misplacement of paper files holding important information; hacking of a computer system, resulting in unauthorized access to personal information.

Whether you're a manufacturer, retailer or service company, cyber-risk insurance is the perfect way to fine-tune your insurance coverage and strengthen the protection of your assets and reputation.

The extent of this coverage varies from insurer to insurer. It is therefore essential to identify your needs to find the product best suited to your business.

Cyber risk insurance covers the following points in particular:

• Costs Incurred in Notifying Customers of Security Breaches
• Public Relations Costs
• Defense Costs
• Expertise and Investigation Costs
• Business Interruption
• Reimbursement of Sums Defrauded
• Equipment Repair and Data Restoration Costs
• Government Fines and Penalties
  

Most insurers offer a product tailored to today's businesses, carefully designed and …affordable! Depending on the program you choose and your company's needs, this coverage could cost you as little as ten dollars a month.

So don't hesitate! Contact your Geska broker to discuss your options.

[1] According to a study conducted by The Boiler Inspection and Insurance Company of Canada
[2] According to the BDC report Les PME d'un Coup d'œil, conducted in August 2011
[3] Source: RCMP report Cybercrime: Overview of incidents and issues in Canada